Annual report
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ASX Announcement Acrow Limited. 2A Mavis Street, Revesby NSW 2122 Page 1 29 September 2025 FY25 ANNUAL REPORT RELEASE Acrow Limited (ASX: ACF) (“Acrow” or “the Company”) is pleased to release the Annual Report for Financial Year 2025. The Annual Report outlines Acrow’s operational and financial performance over the year, highlights key achievements, and outlines the Company’s strategy as it continues to pursue growth opportunities across its core markets. We look forward to providing an update at the Annual General Meeting, to be held on the 14th of November 2025. This release was approved by the Acrow Board of Directors. -ENDS- About Acrow Acrow Limited (ASX: ACF) is a leading provider of smart integrated construction systems across formwork, industrial access, and commercial scaffolding in Australia. Enhancing our portfolio are falsework and shoring, screen solutions, Jacking Systems (also known as Jumpform), and internal engineering capabilities. With over 80 years of experience, Acrow has grown from a small local business to a national leader in the construction industry. Our journey is marked by continuous innovation, expansion, and a vision to set the national standard in engineered industrial and construction services. We’re committed to removing barriers to success for construction and industrial professionals through our smart solutions, can do attitude, and strong partnerships. Operating in 15 locations with over 60,000 tonnes of equipment, Acrow aims to expand its presence in Australia’s civil infrastructure market. Our national network with local expertise ensures efficient project delivery while adhering to best practices. To learn more, please visit: www.acrow.com.au For further information, please contact: Steven Boland Andrew Crowther Managing Director Chief Financial Officer Ph: +61 (02) 9780 6500 Ph: +61 (02) 9780 6500
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2025 Annual Report
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Contents 1 2025 Highlights 2 Chairman’s Report 4 Managing Director’s Report 10 Business Overview 12 Safety 14 Board of Directors 16 Financial Report 82 Directors’ Declaration 83 Independent Auditor’s Report 87 Shareholder Information Front cover: Sydney Harbour Bridge, New South Wales Inside Front Cover: 360 Queen St, Brisbane
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Raising the Standard Acrow is a leading provider of smart integrated construction systems across formwork, industrial services and commercial scaffolding in Australia. Enhancing our portfolio are falsework and shoring, screen solutions, Jumpform, and internal engineering capabilities. Projects operating across Australia Revenue by Business Unit# ● Industrial access 49 .7% ● Formwork 43.6% ● Commercial scaffold 6.7% 2021 2022 2023 2024 2025 105.7 148.3 168.5 215.8 265.1 2021 2022 2023 2024 2025 24.3 36.3 53.2 74.6 80.2* 2021 2022 2023 2024 2025 4.9 7.2 11.6 11.5 11.2* Total Revenue $m EBITDA $m Earnings per Share cents 23% Total Revenue increased to $265.1m 8.0% Increase in EBITDA to $80.2m in 2025 *Underlying *Underlying 11.2c Earnings per share, a decrease of 3% Acrow Annual Report 2025 | 1
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Acrow is a leading provider of smart integrated construction systems across formwork, industrial access and commercial scaffolding. FY25 was a year of consolidation, in which we integrated strategic acquisitions that strengthened our industrial access operations. We supported this growth with the further acquisitions of Brand Australia and Above Scaffolding for a consideration of $25.7 million, plus an earn-out of up to $6 million for Above Scaffolding. Both businesses service the utilities, energy and infrastructure sectors. The Industrial Access division now represents one half of our business and the acquisitions support our successful strategy of diversifying revenue streams. Diversification benefits Industrial Access This diversification is important strategically as it provides balance and increases revenue certainty for our company. Expansion into industrial access has brought a greater proportion of recurring revenue from non-infrastructure, government influenced business. Our work for utilities and large fixed installations across the energy, water, mining, and manufacturing sectors is characterised by multi-year contracts with blue-chip companies such as Origin Energy, Sydney Water and BHP. This ensures earnings stability. Recent acquisitions have facilitated entry into the New South Wales market, particularly the Hunter Valley, and strengthened our services in Queensland. We are also benefiting from the expansions of our jumpform and screen hire businesses which have proven to be highly complementary. This is highlighted by twelve projects where the win of a jumpform package has led to screens work. We are excited by opportunities in new sectors that we service such as steel bridge and ship maintenance. We have strategies to further expand this work particularly for the defence sector, potentially for submarine and naval vessel maintenance, which represents a national growth market. The industrial access work complements our high-margin, project-based formwork business, which continues to benefit from a strong pipeline. Here, we are transitioning from some very large jobs nation-wide and there is a strong pipeline of new projects commencing. Following several years of exceptional performance, the FY25 result reflected some struggles across growing market sectors that experienced project delays. These included infrastructure projects in Queensland, which has been a powerhouse for Acrow’s formwork business. To place this in perspective, the company’s pipeline of new work has never been stronger, and the infrastructure opportunities available have many years to run. Significant and important projects, such as the $15.4 billion River Torrens to Darlington (T2D) opportunity linking north and south Adelaide through new tunnels and motorways, have commenced and are gaining significant momentum. Translation of new work into revenue has been constrained as the rate of government project starts and progress on contracts was slower. Solid financial performance Acrow has benefitted from scale and diversification and underlying net profit was $34.3 million, a 4% increase from $33.0 million in the previous year. Having used up the company’s earlier tax losses, the effective tax rate was 25.7%. Underlying earnings per share were 11.17 cents, a decrease of 3% due to the average share increase on the previous year. Return on equity was 23.7%. Dividends We continued our commitment to rewarding shareholders by delivering full year dividends of 5.85 cents per share, identical to FY24. This represents a high yield and a benchmark compared to industry peers. Capital management Acrow is benefiting from an expanded hire equipment base and is well set up to manage ongoing formwork projects and recycle previously used assets to support newly won projects. While new capital will be needed for the growing jumpform business, along with associated demand for screens, our industrial access model is capital light with a large labour component. We anticipate less capital expenditure will be required in the coming year compared to previous years, benefiting cash production. “ We are excited by opportunities in new sectors that we service such as steel bridge and ship maintenance. Peter Lancken, Chairman Chairman’s Report 2 | Acrow Annual Report 2025
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Investment in people and technology We prioritise investment in upskilling and bringing people into our business. Acrow has entered alliances with Queensland University of Technology and University of Technology, Sydney to bring young engineers to Acrow before their completion of degree, providing real-world education and training. We are developing scaffolding talent through a registered training operation (RTO) specifically to train our own people at Mackay and Brisbane. This has been further strengthened by the acquisition of ATEC during the year. As sourcing skilled labour remains difficult, we intend to expand these operations to ‘breed our own’ and build our capability in scaffolding to the highest level. We have achieved a good track history of retaining talent through remuneration packages including share-based compensation. The company has embarked upon a program to transition to a new enterprise resource planning (ERP) system which will increase scalability and strategic alignment across the business. This is a significant investment which is expected to go live in 2026. Board updates During the year, we farewelled Melanie Allibon as a Non-Executive Director and Chair of the Remuneration and Nomination Committee, and I thank her for her service. She was succeeded in these roles by James Scott on 1 March 2025. James’ 30 years’ experience in the industrials, telecommunications and technology sectors includes roles as Chief Operating Officer of Seven Group Holdings, Managing Director of Accenture Digital ANZ and a Partner at KPMG. He is also an experienced director having served on the Boards of WestTrac, Coates Hire, Integrated Research, Skyfii and Boom Logistics. James adds strength to the Board as we move to a new ERP system. Effective 1 July 2025 we appointed Rod Heale to the Board. His career-long experience in civil infrastructure will help guide Acrow’s progress. Most recently, he was Managing Director of Decmil, an integrated construction and engineering solutions company. Before that, he served as Chief Operating Officer for John Holland’s Australia and Asia business and as a regional executive for Thiess, John Holland and CPB Contractors. Future Our team has a clear roadmap for growth, driven by the consolidation of acquisitions, cross-selling and organic growth opportunities. I am confident that Acrow is well-positioned for continued success. The Australian government is committed to national major transport infrastructure projects valued at more than $126 billion over the next five years1. This represents an important source of work for Acrow’s formwork business, and recurring revenue business from our Industrial Access division is also strong. On behalf of the Board I thank our outstanding management team and employees led by Steven Boland for their contributions over the year. I also thank our shareholders for their strong support. Peter Lancken AM Chairman 8% Underlying EBITDA up from $74.6m to $80.2m 5.85c full year dividends for FY25 1 https://www.infrastructureaustralia.gov.au/reports/annual-budget-statement-2025 p16 Acrow Annual Report 2025 | 3 Pre-assembled Metro Tunnel Adits, Victoria
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FY25 was a year of positioning our company for what we know is ahead of us, via exploiting the competitive advantages we have developed, specifically engineering skills, quality of people, product innovation and geographic coverage. It has also been a year where our strategy of diversification of revenue streams has come to the fore. Acrow is a full-service engineering provider, and this capability is a key differentiator. Our team of 63 engineers represents the single largest formwork and industrial access design group in the country. This enables us to provide innovative solutions at short notice. We have invested in training people, fostering skills and an entrepreneurial culture, and we now employ more than 900 staff. This approach has seen us design unique products where we own the intellectual property, supported by a flexible and well-developed supply chain that provides certainty of supply, price competitiveness and high quality. Strong expansion across our formwork and industrial access businesses has driven national growth across Australia. We operate from 17 depots that support civil infrastructure, mining, energy, utilities, the defence and marine sectors, as well as commercial and high-rise residential construction. Strategy Our strategy of developing business across significant and growing markets underpins continued profitable growth. We are guided by strategic principles which include the diversification of revenue streams. This has been very successful. We place equal weight on serving the infrastructure and construction sectors through formwork, screens and jump forms and on supporting broader industrial sectors through our industrial access business. Having driven both organic growth and acquisitions, we maintain a disciplined, return-on-investment driven approach to all capital expenditure. Following recent acquisitions our industrial access division has grown from less than 25% of group revenue two years ago to 50% in FY25, and many opportunities remain. Supporting these principles is the Acrow Way, which propels constant improvement across specific areas including: ● Safety ● People development ● Engineering excellence ● Internal product development ● Superior customer service and outcomes, and ● ‘Best of breed’ in all areas. Acquisitions During the year we acquired the Brand Australia and Above Scaffolding businesses, which provide an excellent cultural fit. In New South Wales, Brand Australia has a strong market in the power generation and resources sectors in the Hunter Valley, while Above Scaffolding brought a specific expertise in both the asset maintenance and defence markets across the Sydney region with clients that include Transport for NSW (Sydney Harbour Bridge), Thales (Garden Island) and Sydney Water. Financial overview Underlying EBITDA increased 8.0% to $80 million although EBITDA margins decreased 4 basis points to 30%. This reflected an increased proportion of industrial access division revenue, which attracts lower margins compared to project-based formwork packages. While formwork offers high margins, the market when in growth mode is relatively capital intensive. In contrast, multi-year industrial access contracts provide stability of earnings and are more labour- intensive. Notwithstanding this, the 25% margin on labour demonstrates the division’s strong contribution. This diversification provides balance and greater stability for the company. The group continues to attract margins that support the growth of the business, and profit before finance costs and tax were flat at $46 million. Revenue increased 23% to a record $265 million, a testament to the benefits of the move into industrial access as well as the strength of Acrow’s acquisitions. The group has leveraged its balance sheet strength to prepare for future opportunities, using debt to aggressively grow industrial access “ We have invested in training people, fostering skills and an entrepreneurial culture, and we now employ more than 900 staff. Steven Boland, CEO Managing Director’s Report 4 | Acrow Annual Report 2025
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capability. Net debt increased to $123 million from $69 million reflecting acquisitions, earnouts and growth capital expenditure for longer term sales and industrial access labour. The group’s debt facilities were expanded to $170 million effective 1 May 2025 with reduced funding costs, providing pro forma headroom of $40 million. Total assets increased to $406 million from $312 million. Cash flow from operations, which includes proceeds from sale of hire equipment and recoveries from lost equipment, was $57 million, representing a 71% conversion rate. Industrial access revenue surged 83% to $132 million with full year revenues from MI Scaffold and Benchmark Scaffolding, acquired in the prior year, and two months’ revenue from Brand Australia and Above Scaffolding. Following an exceptional FY24, formwork markets softened as major projects completed and new projects experienced delayed starts, particularly in Queensland. Despite a strengthening formwork pipeline and a strong year in NSW, FY25 revenue was $116 million, down 5%, and sales contribution decreased in line with revenue. Product development We are excited about our newest product, Uni-ring, an advanced modular steel scaffold system for civil, industrial, and commercial construction. Its launch in January 2025 has created a new revenue line. A flexible design ensures it is compatible with related products, which facilitates cross-selling. Uni-ring was first deployed at the Perdaman urea fertiliser plant project near Karratha, which will be one of the world’s largest urea plants when completed in 2027 . While some 2,500 tonnes of Uni-ring have been shipped in six months, scalability has increased and Acrow now has capacity to land up to 2,000 tonnes a month. This provides an edge for new project tenders in which Acrow is participating, as our products are tailored for the Australian market and innovation sets us apart. Sales of the Acrowdeck modular slab formwork system have been deployed 23% Sales revenue up from $215m to $265m 27% record new hire contracts secured Acrow Annual Report 2025 | 5 Jumpform, 83 Church Street, Parramatta, New South Wales
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over more than 18,000 square metres since its launch in 2023. More than $3 million of Acrowdeck has been sold, particularly in NSW and Queensland markets. Acrow now engages three industrial designers to innovate equipment across the product lifecycle. We maintain flexibility of manufacturing across countries allowing rapid responses to changing demand. Our pipeline includes ground shoring and heavy-duty propping products in development. Watershed year for Industrial Services FY25 was the year when the Industrial Access division became the group’s largest revenue contributor. This division benefits from long standing relationships with blue-chip clients that provide recurring revenue. Labour hire sales and margins increased and product sales and margins doubled. We are encouraged that while acquisitions increased sales, organic growth provided about 40% of the improvement. Significant contract wins secured included a strategic entry into Australia’s largest industrial access market, Western Australia, with a $42 million contract for the Perdaman urea plant, where Acrow will supply about 3,800 tonnes of scaffolding equipment and provide blue- and white-collar labour over two and a half years. A long-standing relationship with BHP Mitsubishi Alliance, where Acrow via its MI Scaffold subsidiary provides equipment and labour hire to support maintenance and shutdown access, has been renewed for a further three years with a minimum value of $15 million per annum with scope to increase, at Bowen Basin coal mines and Hay Point Coal Terminal at Mackay. Also, a contract with Kent Projects at Ampol Refinery in Brisbane where Acrow provides equipment hire and labour services was revised upward to a minimum of $13 million in 2025. Exceptional trading within MI Scaffold demonstrated the importance of Acrow’s investment and triggered an earn-out payment of $4 million, with a final earn-out expected in FY26. Our most recent acquisitions bring new assets in defence and asset maintenance. These are expected to become significant growth sectors in the next decade. Formwork The formwork hire business experienced softer trading conditions in most markets. In Queensland, formwork revenue increased slightly, attributable to increased jumpform contracts while work for the Cross River Rail completed, valued at $17 million to Acrow to date. In Victoria, work on some major infrastructure projects completed, including the Westgate tunnel valued at $18 million. Work has transitioned to the North East Link and Suburban Rail loop projects. Work in NSW increased to more than $30 million in FY25, with significant projects including the Sydney Metro Managing Director’s Report Labour hire forward order book $230m Jumpform contract wins up 38% 1,450 Clients 23.7% Return on equity continued West underground metro system and the Snowy Hydro 2.0 renewable energy project which remains in the early stages of development. While South Australian and Western Australian revenue was slightly less, work is expected to increase in these states with jumpform and screens projects commencing in WA and strong civil infrastructure opportunities presenting in SA. Acrow is fast becoming one of Australia’s leading jumpform contractors and revenue nearly tripled in FY25, demonstrating the gains from entering this market. Contract wins increased by 38% to $11 million. 30 projects have been secured since launch. This included, through formwork contractor Formcom, a $4.5 million contract with Meriton for jumpform and screens equipment hire at Meriton’s Cypress Palms 76-storey residential apartment development on the Gold Coast. While screens revenue declined to $15 million due to project delays in Queensland and NSW, new contracts secured for the following year were strong. Significant market share gains have placed us in a market leadership position in NSW. Similar gains across Victoria, South Australia and Western Australia played an important role in the 76% uplift of contracts secured during the year. Commercial scaffold Reduced activity across commercial scaffold markets led to lower hire equipment volumes and prices. While prices and volumes stabilised in the second half above historic levels, sales contribution was lower, and margins remained soft. People A highlight has been how we have developed the capability and flexibility of our workforce. As an example, growth in the Industrial Access division has enabled us to build a pool of over 700 experienced 6 | Acrow Annual Report 2025
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North East Link Tunnel – BEW Gantries CASE STUDY What Acrow supplied: Acrow designed and supplied 14 motorised Back-End Works (BEW) gantries for Melbourne’s North East Link Tunnel project. These innovative gantries follow the tunnel boring machine during construction. Each gantry is engineered with a definitive purpose to enable the construction of the smoke duct corbels1. Function of solutions supplied: Each gantry performs a critical function: smoke duct works, scabbling (a technique used to roughen up surfaces or reduce concrete levels by removing a thin layer from the top), drilling, installation of reinforcement, forming, and preparation for the placement of precast planks. Together, these systems ensure seamless and efficient tunnel construction. What is a smoke duct? The smoke duct is a vital tunnel component, enabling exhaust fumes to be drawn out via vacuum and directed safely to the ventilation station. Client’s response to the solution provided: Our client, SPARK, has recognised the BEW Gantries used including Acrow’s Gantries as a game changer in tunnel construction. By incorporating these systems, numerous health hazards traditionally associated with smoke duct works have either been eliminated or significantly reduced, improving safety, productivity, and overall project delivery. 1 A corbel is an architectural structure that projects from a wall and supports a weight above it. $6m Acrow project value 2028 Planned opening $11.1bn Project cost 6.5km of twin road tunnels Photo: Gantry installation Acrow Annual Report 2025 | 7
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scaffold labourers consistently working across the country. This allows us to mobilise a strong local presence and scale as needed, supported by the engineering team. At Perdaman, within six months of commencement we placed 75 scaffolders in rotation on site. A feature of this drive for self-sufficiency was the acquisition of the ATEC training business located in Brisbane. This was further enhanced by the opening of a training centre in Mackay. We believe it is important to ‘breed our own’ people and culture. Acrow’s training and development includes cadet, graduate and apprentice programs that bring young people into the business and allow transition across programs and fields such as engineering, human resources and finance. The leadership, sales and technical training we provide allows continuous reskilling and supports high retention rates. Capital management We are preparing our business for the future, expecting significant medium-term growth in formwork through government infrastructure spending and the build up towards the 2032 Queensland Olympic Games. During FY25 total capital expenditure, excluding ex-hire replacement, was $40 million. However, most of this was focused on building the current growth engines of the business through product growth investment across Jumpform, Acrowdeck, screens and industrial access equipment. As we invest to serve infrastructure and industrial services markets our acquisitions are fully integrated, and we apply a growth hurdle of 40% for all capital expenditure. This has been exceeded over each of the past five years and rewarded by strong growth. We expect another year of preparation ahead and that when new opportunities emerge, we will be well positioned. Outlook We are confident that Acrow is well positioned to take advantage of the significant opportunities ahead. We are benefiting from our investment in acquisitions, products and people, which have opened profitable new revenue channels across the industrial access and formwork sectors and strengthened our platform to support sustainable, long-term growth. While we have paused our acquisitions program and plan to build organically this year, we maintain comfortable management of debt and enjoy significant headroom in banking capacity. We continue to direct capital expenditure, which in FY26 is expected to be about $27 million, toward areas where we can build markets and revenue with near-term effect. Across our Industrial Access division we anticipate significant revenue growth through new and renewed contracts nation-wide, including targeted growth initiatives in South Australia and Western Australia. The division has over $230 million in secured labour hire contracts Managing Director’s Report continued in its forward order book and we anticipate that revenue will approach $200 million in FY26. Recent acquisitions provide cross-selling and growth opportunities in sectors new to Acrow, including asset maintenance and defence. We were pleased to sign in July 2025 a seven-year, $28 million extension to a maintenance contract for Origin Energy in the Surat Basin. This continues the division’s growth which provides high-quality, long term recurring revenue and supports the sustainability of the business. In formwork markets, we expect that delays in projects will continue to be a factor short term. However, jumpform continues to grow and screens revenue is expected to exceed $20 million in FY26. Within the formwork market in the medium term, there will be significant opportunities to leverage the forecast uplift in both the civil Infrastructure space and in the high-rise property market, both commercial and residential. In Queensland, we anticipate a significant uplift when projects associated with the Brisbane 2032 Olympics begin to move into the execution phase. This is far from limited to purely venues and will encompass an enormous amount of other infrastructure and commercial developments to support the Games. In closing, I would like to thank everyone at Acrow for their hard work, talent and strong support for our customers over the past year. We also appreciate the support of our shareholders as we focus on value creation. Steven Boland CEO 4% Underlying NPAT up to $34.3m 41.8% Return on investment up $230m Labour hire work-in-hand book 83% Revenue from industrial access up 8 | Acrow Annual Report 2025
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Sydney Metro Western Sydney Airport CASE STUDY Aerotropolis & Airport Terminal Stations System Used: Acrow USS, Supercuplock, AW80 Sydney Metro Western Sydney Airport is a 23-kilometre rapid transit rail line currently under construction in Greater Western Sydney. The line will operate between St Marys and Bradfield, via the new Western Sydney International Airport, and is expected to provide world-class connectivity for one of Australia’s fastest-growing regions. Construction commenced in December 2022 with a planned completion of 2027 , to align with the opening of the airport. Aerotropolis Train Station ● Construction partner: Wideform ● Scope: 10m single sided walls ● Purpose: the station is the core link to the Aerotropolis precinct – a future hub for technology, science, and creative industries. The development is expected to generate more than 100,000 new job opportunities by 2056. Airport Terminal Train Station ● Construction partner: Futureform Civil ● Scope: 10m Single and double sided walls and falsework. ● Purpose: the station will directly connect the Western Sydney International Airport to the Sydney Metro network via a three-minute covered walk to the terminal. It is expected to be one of the busiest stations on the line. Systems used: ACROW USS system: Skeletal wall framework system to facilitate 10m high single-sided perimeter wall pours. AW80 (Acrow wall 80) panel formwork system: Internal and external wall formwork to carry out concrete wall pours. Supercuplok falsework system: Suspended concrete works forming the various floor levels through the Airport Terminal train station. $8m Acrow project value 2027 Planned opening $11bn Project value 23km New metro rail line 6 New stations Photo: Acrow USS, Supercuplock, AW80 Acrow Annual Report 2025 | 9
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Formwork ● Leading provider of formwork systems in Australia ● Provides a range of wall forming panel, soffit forming and conventional systems for large and small construction equipment ● Dry hires formwork equipment and provides products to support concrete structures during construction ● Leading provider of jumpform services for high-rise property development FY25 Commentary ● Softer trading conditions with project commencement delays ● Formwork pipeline up 13% FY26 Strategy ● Soft market expected to continue ● Significant medium-term opportunities Industrial Access ● Highly experienced team and customer service ethic ● Generates revenue from wet hire agreements including hire, transport, labour and consumables ● At the forefront of scaffold service providers in Australia to the industrial sector ● Serves the industrial, oil, gas, and mining sectors, providing permanent, contract, and interim personnel FY25 Commentary ● Record revenue up 83% ● Recurring revenue from long-standing relationships FY26 Strategy ● $230 million in secured labour hire contracts ● Focus on winning major contracts and renewals Jumpform ● Leading provider of jumpform services for high-rise property development ● Value added highly engineered formwork solutions ● Innovation in construction technology that improves safety, efficiency, and adaptability ● Scaled to meet demands of large infrastructure and development projects and will drive future financial performance FY25 Commentary ● 42 system wins across 30 projects since launch with repeat customers ● Contract wins up 38% FY26 Strategy ● Continued investment and national expansion ● Prepare for significant opportunities particularly in Queensland Screens ● Leading designer and hirer of heavy-duty and versatile screen systems for the construction industry ● Provides screen- based formwork systems which support the construction of commercial high-rise buildings and civil infrastructure, including bridges, roadworks and train stations FY25 Commentary ● Record FY25 hire contract wins ● Achieved NSW market leadership ● 91 screens projects nationally FY26 Strategy ● Expanding market share with strong organic growth ● Complementary to jumpforms Acrow is a leading provider of smart integrated construction systems across formwork, industrial access and commercial scaffolding in Australia. Business Overview 10 | Acrow Annual Report 2025
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Acrow Annual Report 2025 | 11 Harpers Hill Reservoir, New South Wales
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Safety Acrow has a strong commitment to safety, prioritising the health and well being of its employees, customers, and subcontractors. Acrow’s safety culture is built on collaboration and shared responsibility, ensuring that all personnel are trained and follow industry-leading safe work practices. Employees have access to health and safety information from Acrow’s Health and Safety team, Head of People & Culture, and through the Acrow intranet. Our Lost Time Injury frequency rate reduced from 1.1 in FY24 to 0 in FY25, an improvement of 100%. Our total recordable injury frequency rate (TRIFR) went from 5.7 in FY24 to 4.4 in FY25, an improvement of 23%. This was achieved despite working additional hours compared to FY24. Key safety initiatives and programs in FY25 included: ● A clear focus on prioritising mental health in the workplace. ● Implemented a comprehensive and ongoing safety training program that equips employees with the knowledge and skills necessary to fulfill their safety responsibilities. ● Regular updates on health and safety developments for the Directors, CEO and executive leadership team. ● Expanded monthly safety awareness program featuring in-depth discussion and presentation on various safety topics from across the organisation to collaborate on safety initiatives and sharing of best practice. ● Continuous professional development and growth of the Safety team. 2021 2022 2023 2024 2025 26.8 20.7 10.0 5.7 4.4 2021 2022 2023 2024 2025 14.0 214.0 7.0 5.0 6.0 2021 2022 2023 2024 2025 11.5 3.9 2.9 1.1 0.0 2021 2022 2023 2024 2025 6.0 4.0 2.0 1.0 0.0 Total recordable injury frequency rate Total recordable injuries Lost time injury frequency rate Lost time injuries 12 | Acrow Annual Report 2025
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Perdaman Fertiliser Project CASE STUDY Overview Acrow was awarded the scaffolding services contract for the Perdaman Fertiliser Project in Karratha, WA – marking a major strategic achievement for the business. The scope of works included the full-service delivery of scaffolding design, labour, and material supply, with over 3,800 tonnes of scaffolding equipment mobilised to site. This project represents a significant win for Acrow, being the first major contract secured by our Industrial division in Western Australia. The successful execution of this complex and large-scale project reinforces Acrow’s position as a leading industrial scaffolding provider and firmly establishes our capability to deliver on major infrastructure developments across the region. This achievement not only expands our geographic footprint but also fast tracks our entry into the Western Australian industrial market, opening the door to future large-scale opportunities. $41.3m Acrow project value Q3 2027 Completion Current labour 58 onsite 80 employees in total 3,800 tons Material onsite 12 Current indirect staff Jun 2026 Last module delivered Aerial view of Perdaman Fertiliser Project, WA Acrow Annual Report 2025 | 13
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Board of Directors Mr Peter Lancken AM | Non-Executive Chairman Peter has a career spanning over 30 years in a range of executive and director roles in equipment hire, industrial, and real estate companies. He was formerly the Managing Director and Non-Executive Chairman of Kennards Hire Pty Limited. Peter managed an era of growth spanning two decades at Kennards, with sales now exceeding $700 million from a network of over 220 locations. He stepped down from his role as a Non-Executive Director of Kennards in August 2025. Peter is Non-Executive Chairman of Scully RSV and a Non-Executive Director of Crimestoppers NSW. He was Non-Executive Chairman of Propertylink Group (ASX:PLG) prior to its acquisition in April 2019 .Peter holds a Bachelor of Engineering (Civil) degree from the University of New South Wales, is a Fellow of the Institute of Engineers Australia and is a fellow of the Australian Institute of Company Directors. Mr Steven Boland | Executive Director Steve’s 30 year executive career includes extensive experience in operational management and leadership spanning waste, sports management and hire in both Australia and the United Kingdom. Steven joined Acrow in 2013 and since then has served as its Chief Executive Officer. Steven was previously the CEO of the Melbourne Rebels Rugby Club and was responsible for the start-up phase of a Super Rugby professional sporting team. Previously, from 2004 to 2010, Steven served as the Global Executive Director (Recycling) of Visy Industries, and from 2002 to 2004, Steven was the Executive Director (Commercial Waste) of Veolia Environment UK. Mr David Moffat | Non-Executive Director David has a career spanning over 40 years in the property and construction industry. In 2019 David founded Cornerstone (NSW) Pty Ltd, whereas Managing Director, he continues to provide strategic business, project planning and advisory services to Clients, Head Contractors and Tier 1 Subcontractors within the property and construction industry. David brings with him key competencies in Leadership, Construction Management, Innovation and Safety along with a record of successfully navigating the inherent risks and opportunities in the industry. Prior to founding Cornerstone, David spent 29 years with Lipman Group, thirteen of these years as Construction Director and the last six years as Managing Director. He currently sits on the Advisory Board for Star Group and holds a Bachelor of Engineering Degree (Civil) from The University of Technology, Sydney (“UTS”). 14 | Acrow Annual Report 2025
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Mr James Scott | Non-Executive Director James is a seasoned professional with 30 years’ experience in the industrials, telecommunications and technology sectors. James was formerly Chief Operating Officer of Seven Group Holdings (now SGH Limited ASX:SGH), Managing Director of Accenture Digital ANZ and a Partner at KPMG. James has held multiple Director roles including WesTrac, Coates Hire, Integrated Research Limited (ASX:IRL), Skyfii Ltd (now Beonic Ltd ASX:BEO) and is currently a Non-Executive Director of Boom Logistics (ASX:BOL), Chairman of MerchantWise Group, Chairman of Seisma Pty Ltd, Chairman of Tambla Pty Ltd and Chairman of Simplyai Pty Ltd. Mr Rod Heale | Non-Executive Director Rod has more than 30 years’ experience in the building, construction and infrastructure industry across Australia. Rod was most recently, Managing Director of Decmil, an integrated construction and engineering solutions business and prior to Decmil, was Chief Operating Officer for John Holland’s Australia and Asia business. Rod has also served as a Regional Executive for Thiess, John Holland and CPB Contractors. Rod holds a Bachelor of Engineering (Civil) from Monash University and a Master of Construction Law from The University of Melbourne. Rod is also a Fellow of Engineers Australia, a Fellow of the Australian Institute of Company Directors, and a Registered Builder in Victoria and Western Australia. Mr Lee Tamplin | Company Secretary Lee is the founder and Managing Director of Comply Corporate Advisory, a professional services company providing company secretarial and corporate advisory services. Lee has served as company secretary for multiple ASX listed companies and previously served as Acrow’s company secretary for 5 years between 2018 and 2023. Prior to founding Comply Corporate Advisory, Lee managed the largest team of outsourced company secretaries in Australia, is a graduate of the Australian Institute of Company Directors and holds a Graduate Diploma of Applied Corporate Governance and Risk Management from the Governance Institute of Australia. Ms Laurie Lefcourt | Non-Executive Director Chair of the Audit and Risk Committee Laurie has an extensive background in financial, strategic and risk management, particularly in the resources, construction, and infrastructure sectors. She has held senior management and executive roles across Rio Tinto, Queensland Rail, Sinopec Oil and Gas, and Wiggins Island Coal Terminal. Laurie has been a non-executive director for the past 5 years and is also a non-executive director of Elevra Lithium Ltd (ASX:ELV) and Capral Ltd (ASX:CAA). She is a past member on the boards of Advance NanoTek Ltd (ASX:ANO), and SenterpriSYS Ltd (NSX: SPS). In 2013, Laurie founded Sage Strategies Pty Ltd where she provides support to organisations in developing and executing strategy. Laurie holds a bachelor’s degree in finance and administration, is a fellow of the Institute of Chartered Accountants of Australia and New Zealand, as well as a graduate of the Australian Institute of Company Directors. Acrow Annual Report 2025 | 15
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Contents 17 Directors’ Report 22 Auditor’s Independence Declaration 23 Remuneration Report – Audited 44 Financial Statements 48 Notes to the Consolidated Financial Statements 82 Directors’ Declaration 83 Independent Auditor’s Report 87 Shareholder Information 89 Corporate Directory Wee Hur student village, Redfern, Sydney showing jumpform jacks 16 | Acrow Annual Report 2025 Financial Report
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The Directors present their report, together with the Annual Financial Report for Acrow Limited (Acrow or the Company) and its controlled entities, for the year ended 30 June 2025, and the Auditor’s Report thereon. This report has been prepared in accordance with the requirements of the Corporations Act 2001 and the information below forms part of this Directors’ Report: Directors The Directors of the Company at any time during or since the end of the financial year are: ● Peter Lancken (Chairman) ● Melanie Allibon (retired on 26th February 2025) ● Steven Boland (Chief Executive Officer) ● James Scott (joined on 1st March 2025) ● David Moffat ● Rod Heale (joined on 1st July 2025) ● Laurie Lefcourt Information on the current directors and shareholdings are presented in the Annual Report on pages 14 to 15 and pages 35 to 39 respectively. This information includes the qualifications, experience, and special responsibilities of each director. Directors’ meetings The number of directors’ meetings and number of meetings attended by each of the directors of the Company during the financial year ending 30 June 2025 are: Board of Directors Remuneration Nomination Committee Audit and Risk Committee No. held No. attended No. held No. attended No. held No. attended Peter Lancken (Chairman) 13 13 2 2 5 5 Steven Boland (Chief Executive Officer) 13 12 – – – – David Moffat 13 13 2 2 5 5 Laurie Lefcourt 13 13 – – 5 5 Melanie Allibon (retired on 26 February 2025) 8 8 2 2 – – James Scott (joined on 1 March 2025) 5 5 – – – – Company Secretary Lee Tamplin was appointed company secretary with effect from 1st September 2024. Mr Lee Tamplin of Comply Corporate Advisory has over 20 years’ experience in the financial services industry in both Australia and the UK. He is Company Secretary for several ASX listed, NSX listed and Proprietary companies across a range of industries. Mr Tamplin holds a BA (Hons) Financial Services (Bournemouth University United Kingdom), a Diploma of Financial Planning, is a Graduate of the Australian Institute of Company Directors, a Member of the Governance Institute of Australia, and a Member of the Australian Institute of Company Directors. Principal Activities Acrow operates in the Australian construction and industrial services sectors. The construction services work includes hiring formwork, falsework, scaffolding and screen equipment and undertaking sales of formwork and scaffolding related consumables. Acrow also operates hire, sales and labour in the industrial services sector. The formwork operation involves the supply of the temporary mould that supports concrete structures in their construction, whilst falsework equipment is used to support suspended horizontal structures during construction. Acrow perimeter screens support the construction of civil infrastructure, commercial and residential projects, providing an edge protection and perimeter access solution for these structures. Directors’ Report For the year ending 30 June 2025 Acrow Annual Report 2025 | 17
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Directors’ Report (continued) For the year ended 30 June 2025 The industrial services operation supplies an industrial labour service to compliment the scaffolding hire to the energy, industrial and mining sectors. The smaller scaffolding operation supplies scaffolding equipment and access solutions to builders and building contractors when working at heights. Operating and Financial Review The Acrow business undertook a year of consolidation and preparation for the future. Its Industrial Access division performed strongly both organically and through acquisition offset by softer conditions in the formwork division. The business strategy continued to prioritise expansion of its Industrial Access division both organically and through acquisition which translated to another large increase in profit during the year. The construction services sector of the business continued to expand its Jumpform business and focused on operational readiness and strategic positioning to capture significant opportunities expected to arise from proposed major infrastructure and development projects. Financial performance: The Company strengthened its position and continued its momentum in the 12 months to 30 June 2025. The group continues its strategy of growing scale in engineered systems and services including Industrial Access both organically and through specific acquisitions and capital expenditure. The business is continuing to grow in the value added, highly engineered civil formwork solutions particularly the expanded Jumpform business and Industrial Access markets. For strategic and management decision-making purposes, non-IFRS measures are used, where non- operational and one-time expenses such as share-based payments, business acquisition-related restructuring, and process integration costs are excluded to present “underlying” profit measures. These adjustments aim to improve the comparability of financial results, enabling readers to concentrate on routine business activities and providing investors and stakeholders with a clearer view of everyday operations. On an underlying basis, the key highlights for the year included: ● Group revenue of $265.1m (consisting of revenue from continuing operations being $241.7m and proceeds from disposal of ex-hire equipment being $23.4m) up 23% on prior comparative period (pcp). This growth was driven from both organic and acquisitions in the Industrial Access division which was up $59 .5m or 83% pcp offset by a subdued Formwork division down $5.5m or 5% pcp and Commercial Scaffold down $4.2m or 19% pcp. ● The group continues to enhance its recurring revenue through the Industrial Access division, which accounted for 50% of total group revenue (pcp 33%). The acquisitions of Above Scaffold and Acrow Energy and Infrastructure (formerly Brand) companies contributed 2 months revenue as well as a full year contribution from last year’s acquisitions of MI Scaffold and Benchmark Scaffold. ● Sales contribution of $144.4m, up 8%, which was predominantly driven from increased Industrial Access contribution up $20.6m or 75%. This was offset by the Formwork division down $6.0m or 7% and Commercial Scaffold down $4m or 25%. The sales contribution margin reduced 8% from 62% to 54% driven by the increased contribution of the Industrial Access division which has a higher proportion of labour and therefore lower divisional margin. ● Sales contribution margin in the Formwork Division remained relatively steady at 73% (pcp 74%). Industrial Access contribution margin reduced from 38% to 37%. This was predominantly driven by a lower proportion of hire revenue in the division compared to last year, now 15% down from 18.8% of revenue. Likewise Commercial Scaffold sales contribution margin reduced 5.3% due to a lower proportion of hire revenue to total revenue (61% down from 67%). ● Overhead costs increased 9%, due predominantly to the acquisitions of Above and Brand and the full 12 months contributions of MI and Benchmark. Yard costs remained relatively flat due to consolidations and tight expense controls. Labour costs increased from acquisitions and expansion of roles as the business prepares for increased activity. Other overheads were flat to last year however within this was a reduction in expected credit loss provision and bad debt expense of $1.3m. ● Underlying EBITDA* increased 8% to $80.2m. Underlying EBITDA margin decreased 4.0 ppts to 30.3%, resulting from an increased mix of Industrial Access. ● Depreciation increased 15% from $20.7m to $23.9m in line with full depreciation from last year’s capital expenditure, current and previous years acquisitions and elevated current year capital expenditure. ● Net interest expense increased 33% from $7 .8m to $10.4m as a result of the increase in average gross debt up 58% from $60.2m to $95.6m from acquisitions and capital expenditure. ● Underlying NPAT** increased 4% to $34.3 million. ● Underlying Earnings Per Share “EPS” decreased 3% from 11.54 to 11.17 cents. Although underlying NPAT increased marginally by 4%, there was an increase in weighted average shares of 7 .5%. This was impacted 18 | Acrow Annual Report 2025
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from the annualised impact of the previous year’s issue of shares in November (18.75m) and May (6.6m) plus the current year executive performance rights conversions (5m). ● Full year dividend remained at 5.85 cents per share, fully franked. * Underlying EBITDA represents management adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation by excluding non-operational and one-time expenses. These adjustments aim to improve the comparability of financial results, enabling readers to concentrate on routine business activities and providing investors and stakeholders with a clearer view of everyday operations. ** Underlying NPAT represents management adjusted net profit after tax by excluding non-operational and one-time expenses. Similar to Underlying EBITDA, these adjustments aim to improve the comparability of financial results, enabling readers to concentrate on routine business activities and providing investors and stakeholders with a clearer view of everyday operations. Financial position: ● Net Current Assets: Net current assets decreased from $13.7m to $6.8m at year end. ● Net Debt: Net debt increased from $68.6m in 2024 to $123.3m in 2025. This increase was primarily due to: – Acquisition and related costs for Above Scaffolding and Acrow Energy & Infrastructure (formerly Brand). – Growth capex to ensure we can meet our secured contract commitments and prepare for future growth. – Contractual payments associated with earn out and deferred payments from acquisitions. – Providing extended terms to key customers to enable significant equipment sales, and the ensuing replacement of that ex-hire equipment. – Front loaded costs on contracts such as labour and freight that will be recovered over time as the contract progresses. ● Net Gearing: The net gearing ratio (net debt / (net debt + equity)) increased from 32.7% to 45.3%. Net debt to EBITDA increased from 1.1 to 1.8. ● Property, Plant, and Equipment: The value of property, plant, and equipment increased from $170.4m to $211.3m. This increase was driven by capital expenditure and acquisitions, offset by depreciation and asset disposals. ● Total Working Capital: Total working capital increased by $17 .6m to $68.2m. This increase was due to: – An increase in trade receivables by $20.5m, consistent with the rise in revenue. – A decrease in inventories by $0.2m. – An increase in prepayments and other assets by $2.9m. – Offset by an increase in trade payables by $5.6 million. Operating results: Refer to the Managing Director’s Report on pages 4 to 8 of this Annual Report. Dividends The Company paid a 3.00 cents fully franked dividend per share being a total of $9 .19m for the financial year ending 30 June 2024 on 29 November 2024. Shares totalling 754,196 were issued under the Dividend Reinvestment Plan at $1.0604 including a 2.5% discount. The Company paid an interim 2.90 cents fully franked dividend per share being a total of $8.91m for the financial year ending 30 June 2025 on 30 May 2025. Shares totalling 745,197 were issued under the Dividend Reinvestment Plan at $1.0104 per share including a 2.5% discount. Subsequent to balance date, the Directors declared a dividend of 2.95 cents per share, fully franked on 25 August 2025 to be paid on 28 November 2025. The dividend has not been provided for in this financial report. Environmental Regulations Acrow’s operations are not subject to significant environmental regulations under the Commonwealth of Australia and State/Territory legislation. The Board believes that Acrow has adequate systems in place to manage its environmental responsibilities and is not aware of any breach of regulations. No Officers are Former Auditors No officer of the Company has been a partner in an audit firm, or a director of an audit company, that is an auditor of the Company during the year or was such a partner or Director at a time when the audit firm or the audit company undertook an audit of the Company. Non-Audit Services All non-audit services were subject to the corporate governance procedures adopted by the Group and have been reviewed by the Audit and Risk Committee to ensure that they do not impact the integrity and objectivity of the auditor. All the non-audit services provided do not undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor’s own work, acting in a management or decision-making capacity for the Group, acting as an advocate for the Group or jointly sharing risks and rewards. Details of the amounts paid or payable to the auditor of the Group, Grant Thornton and their related practices for Acrow Annual Report 2025 | 19
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Directors’ Report (continued) For the year ended 30 June 2025 audit and non-audit services during the year are set in note 28. Significant Changes in the State of Affairs On 12 February 2025, Acrow acquired 100% of the issued shares of Australasian Training & Education Centre Pty Ltd (ACN 158 933 370). ATEC provides nationally recognised construction and mining training and certifications, delivered by and in partnership with industry clients, under industry standards and conditions. It works directly with industry organisations and employers to ensure their employees and contractors have the skills, knowledge, accreditations, and licences required to do their job. The acquisition is intended to secure the groups access to continued supply of labour. The consideration comprised a $850,000 Completion Payment and $250,000 deferred consideration over three years. On 30 April 2025, Acrow acquired 100% of the issued shares of Above Scaffolding Pty Ltd (ACN 073 575 201) and Above Scaffolding Services (ACN 168 409 041). Above Scaffolding is recognised as a leading provider of technical and sophisticated engineered Scaffolding and Access Solutions throughout NSW. The acquisition of the business is highly complementary to Acrow’s existing suite of products and services across Australia. Above has an extensive history across infrastructure, industrial, construction and maritime markets with a solid portfolio of blue-chip clients. The consideration comprised a $11,000,000 Completion Payment followed by a working capital adjustment of $1,298,000, and two tranches of Contingent Considerations of up to $6,000,000, provided Above’s EBITDA exceeds $4,200,000 for each of the Earn Out Periods. On 1 May 2025, Acrow acquired 100% of the issued shares of Acrow Energy and Infrastructure Services (Australia) Pty Ltd (ACN 106 939 262) and Acrow Energy and Infrastructure Services (Gladstone) Pty Ltd (ACN 075 145 470), formerly known as Brand Energy and Infrastructure Services Australia and Brand Energy and Infrastructure Services (Gladstone) Pty Ltd (ACN 161 426 366). Acrow Energy & Infrastructure Services has a strong operational presence in Hunter Valley which provides geographical benefits in securing jobs within the region with a smaller presence within Gladstone which provides direct synergies with recently acquired MI Scaffolding, Benchmark Scaffolding and Above Scaffolding. The acquisition brings shared access to specialised assets such as QuikDeck and extends Acrow’s capabilities to service customers. The total consideration is comprised of a $13,558,831 completion cash payment and a return on working capital adjustment of $155,000. Remuneration Report The remuneration report forms part of the directors’ report and can be found on pages 23 to 43. It has been audited in accordance with section 300A of the Corporations Act. Share Rights 3,747 ,368 Performance Rights were issued during the year with vesting periods at the end of the financial years 2027 . If the vesting conditions are met each Performance Right can be exercised into one Fully Paid Ordinary Share at the holder’s discretion until the expiry date of 5 November 2039 . The Performance Rights were issued to executives and senior managers of the Company under the Company’s Rights Plan and form part of the new Long Term Variable Remuneration (LTVR) of the employees. Performance Rights issued to KMP’s are included in this balance. 6,371,015 Performance Rights vested during the year after meeting vesting criteria for the measurement period to 30 June 2024 and 5,106,111 (including carried forward vested but unexercised) units were exercised into ordinary shares. 2,102,970 units of Performance Rights were cancelled due to failure to meet performance hurdles. Balance of outstanding rights at year end: Quantity outstanding Expiry date Performance rights 11,762,484 31 July 2035 to 5 November 2039 For further details, refer to note 24 of this Annual Report. Likely Developments and Expected Results For information about likely developments and expected results in the operations of the Company, refer to the Chairman’s and Managing Director’s Reports on pages 2 to 8 of this Annual Report. Indemnification of Directors and Officers Under the terms of Article 35 of the Company’s Constitution, and to the extent permitted by law, the Company has indemnified the directors of the Company named in this Directors’ report, the Company Secretaries, and other persons concerned in or taking part in the management of Acrow. The indemnity applies when persons are acting in their capacity as officers of the Company in respect of: 20 | Acrow Annual Report 2025
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● Liability to third parties (other than the Company or related bodies corporate), if the relevant officer has acted in good faith; and ● Costs and expenses of successfully defending legal proceedings in which relief under the Corporations Act 2001 is granted to the relevant officer. The Group has not made any indemnity payment during the year. Insurance Premiums During the financial year, the Company paid a premium of $242,390 excluding GST for Directors’ and Officers’ Liability Insurance policy. The insurance provides cover for the Directors named in this Directors’ Report, the Company Secretary, and officers and former Directors and officers of the Company. The insurance also provides cover for present and former Directors and officers of other companies in the Group. Corporate Governance Statement This statement outlines the main corporate governance practices in place throughout the financial year and can be referred to on the Acrow Group website: https://www.acrow.com.au/investors/ Events Subsequent to the End of the Financial Year On 25 August 2025 the Directors declared a 100% franked dividend of 2.95 cents per share to be paid on 28 November 2025. Dividend Reinvestment Plan is available for election. The dividend has not been provided for in this financial report as it was not declared until after 30 June 2025. Other than the above events, there has not otherwise arisen between 30 June 2025 and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Group, to affect significantly the operations of the Group, the results of those operations, or the state of the affairs of the Group in future financial years. Rounding of Amounts Acrow Limited is a company of the kind referred to in the Australian Securities and Investments Commission (ASIC) Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, dated 24 March 2016 and in accordance with that Legislative Instrument, amounts in the Consolidated Financial Statements and this Directors’ Report have been rounded off to the nearest dollar, unless stated otherwise. Lead Auditor’s Independence Declaration The lead auditor’s independence declaration made under section 307C of the Corporations Act 2001 is set out on page 22 of the Annual Report and forms part of the Directors’ Report for the financial year ended 30 June 2025. Signed in accordance with a resolution of the Directors: Peter Lancken Steven Boland Chairman Director, Chief Executive Officer Sydney, 29 September 2025 Sydney, 29 September 2025 Acrow Annual Report 2025 | 21
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Grant Thornton Audit Pty Ltd Level 26 Grosvenor Place 225 George Street Sydney NSW 2000 Locked Bag Q800 Queen Victoria Building NSW 1230 T +61 2 8297 2400 grantthornton.com.au ACN-130 913 594 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation. Auditor’s Independence Declaration To the Directors of Acrow Limited In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Acrow Limited for the year ended 30 June 2025, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b no contraventions of any applicable code of professional conduct in relation to the audit. Grant Thornton Audit Pty Ltd Chartered Accountants S M Thomas Partner – Audit & Assurance Sydney, 29 September 2025 Auditor’s Independence Declaration For the year ended 30 June 2025 22 | Acrow Annual Report 2025
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Remuneration Report – Audited For the year ended 30 June 2025 1. Letter from the Chair of the Remuneration Committee Dear Shareholders, On behalf of the Board of Directors, I am honoured to present the Remuneration Report of Acrow Limited for the financial year ending 2025. As the newly appointed Chair of the committee, I would like to take this opportunity to express our sincere recognition and appreciation for the dedicated service of our outgoing Non-Executive Director and previous Chair of the Committee, Melanie Allibon whose leadership and commitment have played a significant role in shaping Acrow’s remuneration practices. As a listed company, we are committed to maintaining the highest standards of transparency and accountability. Our remuneration strategy is designed to attract, retain, and motivate talented individuals who are essential to driving the company’s success. We believe that a well-structured remuneration framework is crucial in fostering a performance-oriented culture that aligns with our strategic objectives and delivers sustainable value to our shareholders. The report provides detailed information on the remuneration of our key management personnel, including the fixed and variable components of their compensation, performance metrics, and the alignment of their incentives with the company’s performance. We are confident that our remuneration framework supports our goal of creating long-term value for our shareholders while ensuring that our executives are rewarded fairly and appropriately for their contributions. Looking ahead, the Remuneration Committee is focused on building upon this strong foundation. We are currently exploring several new initiatives designed to further align executive incentives with shareholder interests, including a review of performance metrics that support the company’s strategic priorities. Additionally, we are planning to strengthen our stakeholder engagement process, ensuring that shareholder feedback continues to inform our remuneration framework. These initiatives aim to foster a high-performance culture, attract top talents, and deliver sustainable long-term value for all shareholders. We look forward to keeping you informed as we progress with these plans and appreciate your ongoing support and engagement on this important aspect of our corporate governance. Yours sincerely, James Scott Independent Non-Executive Director Chair of the Remuneration Committee 2. Scope of the Remuneration Report and Individuals Classed as Key Management Personnel (KMP) The Remuneration Report sets out the prescribed key management personnel (KMP) remuneration information and details in accordance with section 300A of the Corporations Act and associated regulations, including policies, procedures, governance, and factual practices as required. In addition, Acrow Limited (Acrow, the Company) has decided to set out such further information as shareholders may require for them to obtain an accurate and complete understanding of the Company’s approach to the remuneration of KMP. KMP are the non-executive directors, the executive directors and employees who have authority and responsibility for planning, directing and controlling the activities of the consolidated entity, directly or indirectly during any part of the financial year. On that basis, the following roles/individuals are addressed in this report: Non-executive Directors (NEDs) ● Mr Peter Lancken, independent non-executive Chairman since 27 March 2018. ● Mr David Moffat, independent non-executive director since 19 September 2019 . ● Ms Melanie Allibon, independent non-executive director from 1 September 2021 to 26 February 2025 and Chair of Remuneration Committee. ● Ms Laurie Lefcourt, independent non-executive director since 1 October 2021 and Chair of Audit & Risk Committee. ● Mr James Scott, independent non-executive director and Chair of Remuneration Committee since 1 March 2025. ● Mr Rod Heale, independent non-executive director since 1 July 2025. Senior Executives Classified as KMP During the Reporting Period ● Mr Steven Boland, Chief Executive Officer (CEO) & Executive Director since 27 March 2018. ● Mr Andrew Crowther, Chief Financial Officer (CFO) since 8 July 2019 . 3. Context of KMP Remuneration for FY2025 and into FY2027 – unaudited 3.1 Context for Remuneration Governance during FY2025 The KMP remuneration structures that appear in this report are largely those that prevailed over FY2025, as is required Acrow Annual Report 2025 | 23
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Remuneration Report – Audited (continued) For the year ended 30 June 2025 by regulation, but also address expectations for FY2026 to FY2027 , to some extent. The Board has further developed remuneration governance, policies and practices applied to KMP of the Company, as well as other employees as the business has and continues to mature. The following outlines important context for the decisions that were made in relation to remuneration for/during FY2025, the outcomes of which are presented in this report. ● A total of 3,747 ,368 performance rights were issued in FY2025 for 2027 plans. These are comprised of 551,066 units to Steven Boland (CEO), 226,238 units to Andrew Crowther and 2,970,064 units to other senior managers, with three-year measure periods attached. ● A total of 332,020 units were issued to Senior Managers from acquired businesses for 2024 plans as compensation. These vested and were exercised in October 2024. ● The Company is focused on delivering value for shareholders by executing on strategy including: – Being the leading engineered formwork sales and hire equipment solutions provider in Australia including expanding its Jumpform presence – Become the leading engineered solutions provider to the Australian Industrial Services market – Concentrating on high return on investment (ROI) profitable organic growth across all states – Actively pursuing strategically sensible acquisitions in the industrial services sector to accelerate profitable growth 4. Overview of Acrow’s Remuneration Governance Framework & Strategy 4.1 Transparency and Engagement The Company seeks input regarding the governance of KMP remuneration from a wide range of sources, including: ● Shareholders and other stakeholders, ● Remuneration Committee Members, ● External remuneration consultants (ERCs), ● Other experts and professionals such as tax advisors and lawyers, and ● Company management to understand roles and issues facing the Company. The following outlines a summary of Acrow’s Remuneration Framework, including policies and practices. Shareholders can access a number of the related documents by visiting the investors portal on the Company website www.acrow.com.au. It is recommended that shareholders, proxy advisors and other interested parties consider all the available information. 4.2 Remuneration Committee Charter The Remuneration Committee Charter (the Charter) governs the operation of the Remuneration Committee (the Committee). It sets out the Committee’s role and responsibilities, composition, structure and membership requirements. The purpose of the Committee is to assist the Board by: ● Establishing appropriate processes regarding the review of the performance of directors, committees and the Board, and implementing them, ● Reviewing and making recommendations to the Board in relation to the remuneration packages of Senior Executives and non-executive directors, equity-based incentive plans and other employee benefit programs, ● Developing policies, procedures and practices that will allow the Company to attract, retain and motivate high calibre executives, and ● Ensuring a framework for a clear relationship between key executive performance and remuneration. The Committee has the authority to obtain outside legal or other professional advice or assistance on any matters within its terms of reference. Acrow recognises the importance of ensuring that any recommendations given to the Committee provided by remuneration consultants are provided independently of those to whom the recommendations relate. Further information about the parameters under which external remuneration consultants are engaged is provided below. 4.3 Senior Executive Remuneration Policy The Company’s senior executive remuneration policy may be summarised as follows: ● Remuneration for senior executives should be composed of: – Fixed Package inclusive of superannuation, allowances, benefits and any applicable fringe benefits, – Variable remuneration which is at-risk, creating opportunity for the Company to pay less than the potential variable remuneration when performance expectations have not been met, and which is partly an incentive to reward executives for meeting or exceeding expectations, including: • Short-term Incentive (STI) or Bonus opportunity which provides a reward for performance against annual objectives, and • Long Term Variable Remuneration (LTVR) which provides an equity-based reward for performance against indicators of shareholder benefit or value creation, over a multi-year period, and 24 | Acrow Annual Report 2025
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– In total the sum of the elements will constitute a total remuneration package (TRP). ● Both internal relativities and external market factors should be considered, ● Remuneration will be managed within a range to allow for the recognition of individual differences such as the calibre of the incumbent and the competency with which they fulfil a role (a range of +/- 20% is specified in line with common market practices), and ● Termination benefits will generally be limited to the default amount allowed for under the Corporations Act (without shareholder approval). Changes to remuneration resulting from annual reviews are generally to be determined in relation to: ● external benchmarking, and/or market movements, ● whether current remuneration for the incumbent is above or below the policy midpoint/benchmark – those below the midpoint will tend to receive higher increases, ● the competence of the incumbent in fulfilling their role which determines their positioning within the policy range – higher calibre incumbents are intended to be positioned higher in the range, and ● any changes to internal relativities related to role/ organisation design that have occurred since the previous review. 4.4 Non-executive Director Remuneration Policy The Non-executive Director remuneration policy applies to non-executive directors (NEDs) of the Company in their capacity as directors and as members of committees, and may be summarised as follows: ● Remuneration may be composed of: – Board fees, – Committee fees, – Superannuation, – Other benefits, and – Equity (if appropriate at the time) ● Remuneration will be managed within the aggregate fee limit (AFL) or fee pool approved by shareholders of the Company, noting that equity does not count towards the AFL unless cash remuneration is sacrificed for a grant of equity, refer section 9 , ● The Board may seek adjustment to the AFL in the case of the appointment of additional NEDs, or should the AFL become insufficient to attract or retain the appropriate calibre of NEDs, ● Remuneration should be reviewed annually, ● Committee fees may be used to recognise additional contributions to the work of the Board by members of committees in circumstances that the workload of the Board is not equally shared, and ● The Board Chair fee will be set as a multiple of the fees payable to other NEDs, in recognition of the additional workload associated with this role. 4.5 Short-Term Incentive (STI) Policy The short-term incentive policy of the Company is that an annual component of executive remuneration should be at-risk and allow the Company to modulate the cost of employment to align with individual and Company performance while motivating value creation for shareholders: ● The STI should be paid in cash and deferral should not apply since there is a separate component of remuneration (the LTVR) which is intended to address long term outcomes, ● Non-executive directors are excluded from participation, ● A termination of employment will trigger a forfeiture of some or all of unearned STI entitlements depending upon the circumstances of the termination. The Board retains discretion to trigger or accelerate payment or vesting of incentives provided the limitation on termination benefits as outlined in the Corporations Act are not breached, and ● Short-term awards are linked to the main drivers of value creation at the Group, business unit or individual level, as may be appropriate to the role and subject to Board decision. Acrow Annual Report 2025 | 25
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Remuneration Report – Audited (continued) For the year ended 30 June 2025 4.6 Long-Term Incentive Policy The long-term incentive policy of the Company is that a component of remuneration of executives should be at-risk and linked to equity in the Company to ensure that the interests of executives are aligned with those of shareholders, and share risk with shareholders: Long Term Variable Remuneration Plan (LTVR) Aspect Plan Rules, Offers and Comments Purpose The LTVR Plan’s purpose is to provide an element of at-risk remuneration that constitutes part of a market competitive total remuneration package and aims to ensure that Senior Executives have commonly shared goals related to producing relatively high returns for Shareholders. Other purposes of the LTVR Plan are to assist Senior Executives to become Shareholders, provide a component of remuneration to enable the Company to compete effectively for the calibre of talent required for it to be successful and to help retain employees, thereby minimising turnover and stabilising the workforce such that in periods of poor performance the cost is lesser (applies to non-market measures under AASB2). As at balance date, the Company had Performance Rights only for the purposes of the LTVR. Form of Equity The current plan in operation at balance date includes the ability to grant the following Rights to Eligible Employees which include the Managing Director and employees as nominated by the Board: ● Performance Rights, which are subject to performance related vesting conditions, and which may be settled upon exercise by new issues or on market purchase of ordinary fully paid Shares, ● Share Awards, Loan Funded Shares and Options of which none have been granted since 2020. No dividends accrue to unvested Rights or Options, and no voting rights are attached. LTI Value The Board retains discretion to determine the LTVR to be offered each year. FY2025 Invitations Steven Boland (CEO) was granted 551, 066 performance rights over two tranches with a total fair value of $212,050. These have potential vesting in 2027 . Andrew Crowther (CFO) was granted 226,238 performance rights over two tranches with a total fair value of $87 ,056. These have potential vesting in 2027 . Eligible senior employees were granted 2,970,064 performance rights over two tranches with a total fair value of $1,142,881. These have potential vesting in 2027 . Certain senior employees from acquired companies were granted 332,020 performance rights of the FY2024 vesting issue as compensation, which immediately vested and were exercised. These are valued at the share price on the grant date 22 October 2024 for $356,922. Measurement Period Three-year Measurement Periods combined with annual grants will produce overlapping cycles that will promote a focus on producing long term sustainable performance/value improvement and mitigates the risk of manipulation and short-termism (continuous improvement). Because of the timing of grants, the life of the Right may be less than 3 years at times, however this does not impact the Measurement Period over which performance is measured. 26 | Acrow Annual Report 2025
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Long Term Variable Remuneration Plan (LTVR) Aspect Plan Rules, Offers and Comments Performance, Vesting and Forfeiture Conditions The Board has discretion to set Vesting, Performance and Forfeiture Conditions and for each Invitation. When such conditions are not met, the entitlement lapses. FY2025 Invitations Except as indicated below, a participant must remain employed by the Company during the Measurement Period and the performance conditions must be satisfied for LTVR to vest. Retesting Retesting is not contemplated under the Plan Rules. Amount Payable for Grants The target value of LTVR is included in assessments of remuneration benchmarking and policy positioning. No amount is payable by participants for grants of Performance Rights. An Acquisition Price will apply in respect of grants of Loan Funded Shares (with an accompanying loan) and may also apply to grants of Share Awards, which may or may not have Vesting Conditions. Any loan must be repaid prior to the end of the Loan Term, up to the Market Value of the Loan Funded Shares (non-recourse). Exercise of Grants Participants will be required to submit an Exercise Notice in respect of Performance Rights and Options, in order to convert them to Shares, as well as the payment of the Exercise Price in respect of each Option exercised. No amount is payable on the exercise of Performance Rights. Disposal Restrictions etc. Options and/or Performance Rights granted under this Plan may not be assigned, transferred, encumbered with a Security Interest in or over them, or otherwise disposed of by a Participant, unless the consent of the Board is obtained, or due to the force of law in the case of the death of a Participant. The Board has discretion to determine the disposal restrictions attaching to Share Awards, Loan Funded Shares or Plan Shares (resulting from vesting and exercise of grants) as part of the Invitation terms. Cessation of Employment In the event of cessation of employment in the circumstances of a “Bad Leaver” (resignation or termination for cause), all unvested entitlements will be forfeited. In other circumstances, the treatment of unvested awards will be dealt with as determined by the Board. Change of Control of the Company (CoC) If in the opinion of the Board a change of control event has occurred, or is likely to occur; a) Performance Rights granted will vest to the extent that the performance period has elapsed, and to the extent performance conditions have been met (may involve a pro- rata calculation), with the remainder lapsing, b) Options may be subject to accelerated vesting in the sole discretion of the Board, and c) Share Awards or Loan Funded Shares which do not vest will automatically be surrendered by the Participant, and any that do not lapse, and which are subject to an outstanding loan will be subject to the requirement of the loan being repaid by the date of the CoC. Fraudulent or Dishonest Actions If the Board takes the view that a Participant has acted fraudulently, dishonestly, or wilfully breaches their duties to the Group, the Board has discretion to determine that unvested or unexercised awards are forfeited. 4.7 Securities Trading Policy The Company’s Securities Trading Policy applies to Directors and executives classified as KMP (including their relatives and associates), those employees working closely with KMP, employees nominated by the Board, or any other employee holding inside information. It sets out the guidelines for dealing in any type of Company Securities by persons covered by the policy, and the requirement for the Company to be notified within 2 business days of any dealing. It also summarises the law relating to insider trading which always applies to everyone. Under the current policy, those covered by the policy may not trade during a “blackout period” or when they hold inside information (subject to exceptional circumstances Acrow Annual Report 2025 | 27
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Remuneration Report – Audited (continued) For the year ended 30 June 2025 arrangements, see the policy on the Company website). The following periods in a year are “blackout periods” as defined in the policy: ● From the half year balance date until 24 hours following the release of the Company’s half year results, ● From the financial year balance date until 24 hours following the release of the Company’s preliminary full year results (Appendix 4E), ● Within 24 hours of release of price sensitive information to the market, and ● another date as declared by the Board (“ad-hoc”). 4.8 Executive Remuneration Engagement Policy and Procedure The Company has adopted an executive remuneration engagement policy and procedure to manage the interactions between the Company and external remuneration consultants, to ensure their independence and that the Remuneration Committee will have clarity regarding the extent of any interactions between management and the external remuneration consultants. This policy enables the Board to state with confidence whether the advice received has been independent, and why that view is held. The Policy states that external remuneration consultants are to be approved and engaged by the Board before any advice is received, and that such advice may only be provided to a non-executive director. Interactions between management and the external remuneration consultants must be approved and will be overseen by the Remuneration Committee when appropriate. Refer to section 12. 4.9 Variable Executive Remuneration – The Short-Term Incentive Bonus Plan Short-term Incentive Plan (STIP) Aspect Plan, Offers and Comments Purpose The short-term incentive bonus plan’s purpose is to give effect to an element of remuneration. This element of remuneration reinforces a performance focused culture, encourages teamwork and co-operation among executive team members and maintains a stable executive team by helping retain key talent. These objectives aim to be achieved by a simple plan that rewards participants for their performance during a 12-month period. Measurement Period The Company’s financial year (12 months). For the year ended 30 June 2025, the measurement period was from 1 July 2024 to 30 June 2025. Award Opportunities The CEO was offered an opportunity of up to 40% of Fixed Package which is based on achieving a range of measurable KPI’s which are predominately based on achieving Profit before Tax targets and strategic goals and meeting safety standards. For other KMP Executives, their individual KPI’s are determined by the CEO in collaboration with the Board. Performance Assessments and Award Outcomes Performance assessments are undertaken by the CEO in relation to other Senior Executives who then make recommendations to the Board, and by the Board in relation to the CEO. The Board has discretion to vary the recommendations of the CEO in determining final award outcomes. Award Payment Assessments and award determinations are performed following the end of the Measurement Period and the auditing of Company accounts. Awards will generally be paid in cash in the September following the end of the Measurement Period. They are to be paid through payroll with PAYG tax deducted as appropriate. There are limited situations where awards may be satisfied through the issue of equity. Deferral has not been introduced due to the mix of short-term and long-term incentives being appropriately weighted. Cessation of Employment During a Measurement Period In the event of cessation of employment due to dismissal for cause, all entitlements in relation to the Measurement Period are forfeited. In the event of cessation of employment due to resignation, all entitlements in relation to the Measurement Period are forfeited, unless the termination is classified as “good leaver” in the discretion of the Board, in which case the Board may make an award at the time of the termination, or assess outcomes at the normal time, following the termination. Change of Control In the event of a Change of Control including a takeover, the Board has discretion regarding the treatment of short-term incentive bonus opportunities. 28 | Acrow Annual Report 2025
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Short-term Incentive Plan (STIP) Aspect Plan, Offers and Comments Fraud, Gross Misconduct etc. If the Board forms the view that a Participant has committed fraud, defalcation or gross misconduct in relation to the Company then all entitlements in relation to the Measurement Period will be forfeited by that participant. 4.10 Variable Executive Remuneration – Long Term Variable Remuneration Plan (LTVR) – Performance Rights The LTVR plan is an annual performance rights plan to which selected executives and KMP are invited to participate at the Board’s discretion. The Company currently has three LTVR plans running which share the same method but differ slightly in their hurdles and vesting criteria detailed in the table below. All the performance rights were granted in the form of performance rights directly linked to the performance of the Company, the returns generated, and relative increases in shareholder wealth. This structure was used to ensure appropriate alignment to shareholder value over a specified timeframe. Long Term Variable Remuneration Plan (LTVR) Aspect Plan, Offers and Comments Instrument Performance rights being a right to receive a share subject to performance and vesting conditions. Purpose To motivate executives to achieve the long-term performance targets. Plan limit Performance rights issued to CEO and senior executives for 2025 rely on Corporations Act Section 708 relief – “Senior Managers”. Performance rights issued to CEO and senior executives for 2026 and 2027 rely on Part 7 .12 of the Corporations Act. LTVR Value The Board retains discretion to determine the LTVR to be offered each year 2024 plan vesting and exercise The measurement period of the 2024 plan finished on 30 June 2024. The performance outcome resulted in 100% of the rights on issue vesting, which amounted to a total of 6,038,995 units vested in FY2024. 1,872,816 rights were exercised into ordinary shares as at the date of this report. The KMP vestings are below: KMP Steven Boland vested 1,074,294 rights and subsequently exercised into shares. KMP Andrew Crowther vested 426,426 rights and subsequently exercised into shares. A further 332,020 performance rights were issued to senior managers as compensation, all vested and were exercised immediately. 2025 plan vesting A total of 4,159 ,690 performance rights were granted in FY2024 for the 2025 plan. KMP Steven Boland was issued 641,968 performance rights in this plan with a total fair value of $442,235. 320,984 units of these are forfeited due to failure to meet earnings per share (EPS) targets, a fair value of $240,272 was credited to the share-based payments expense for the year. KMP Andrew Crowther was issued 254,821 performance rights in this plan with a total fair value of $175,539 . 127 ,410 units of these are forfeited due to failure to meet EPS targets, a fair value of $95,373 was credited to the share-based payments expense for the year. A total of 2,079 ,845 performance rights issued relating to Total Shareholder Return targets met the return conditions of vesting including KMP rights above. A total of 2,079 ,845 performance rights relating to EPS targets did not meet the threshold conditions and have lapsed. Acrow Annual Report 2025 | 29
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Remuneration Report – Audited (continued) For the year ended 30 June 2025 Long Term Variable Remuneration Plan (LTVR) Aspect Plan, Offers and Comments LTVR Value (continued) 2026 plan Invitations A total of 3,870,764 performance rights were granted in FY2024 to the 2026 plan. KMP Steven Boland has been issued 587 ,600 performance rights in this plan with a total fair value of $182,009 . KMP Andrew Crowther has been issued 228,882 performance rights in this plan with a total fair value of $70,896. 2027 plan Invitations A total of 3,747 ,368 performance rights were granted in FY2025 to the 2027 plan. KMP Steven Boland has been issued 551,066 performance rights in this plan with a total fair value of $212,050. KMP Andrew Crowther has been issued 226,238 performance rights in this plan with a total fair value of $87 ,056. Dividends No dividends are paid or accrued on unvested awards Tranches 2025 to 2027 Plans: ● 50% issue measured on Earnings per share (EPS) criteria specifically “NPAT / Weighted average number of shares on issue” ● 50% issue measured on Total Shareholder return (TSR) criteria. This compares the share price and dividends through the measurement period to the ASX small industrials index. Performance hurdles The vesting of the TSR Performance Rights will be determined by reference to the following scale, in relation to the Measurement Period: 2025 to 2027 Plans: Performance Level Company’s Annulised TSR Compared to the Annulised TSR of the ASX Small Industrials Total Return Index % of Tranche Vesting Stretch & Above Index TSR + 160% TSR CAGR 100% Between Target and Stretch > 130% Index TSR, < 160% TSR CAGR Pro-rata Target 130% Index TSR 50% Between Threshold and Target > Index TSR, < 130% TSR CAGR Pro-rata Threshold Index TSR 0% Below Threshold < Index TSR 0% TSR is the sum of Share price appreciation and dividends (assumed to be reinvested in Shares) during the Measurement Period. It is annualised for the purposes of the above vesting scale. CAGR is Compound Annual Growth Rate. The Company’s annualised TSR will be compared with the annualised TSR of the Index. The vesting of EPS Performance Rights will be determined by reference to the following scale, in relation to the Measurement Period: 30 | Acrow Annual Report 2025
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Long Term Variable Remuneration Plan (LTVR) Aspect Plan, Offers and Comments Performance hurdles (continued) 2025 to 2026 Plans: Performance Level Earnings Per Share (EPS) CAGR % of Tranche Vesting Stretch & Above 25% 100% Between Target and Stretch > 15%, < 25% Pro-rata Target 15% 50% Between Threshold and Target > 10%, < 15% Pro-rata Threshold 10% 0% Below Threshold < 10% 0% 2027 Plan: Performance Level Earnings Per Share (EPS) CAGR % of Tranche Vesting Stretch & Above 15% 100% Between Target and Stretch > 8%, < 15% Pro-rata Target 8% 50% Between Threshold and Target > 5%, < 8% Pro-rata Threshold 5% 0% Below Threshold < 5% 0% EPS growth will be calculated as the CAGR required for the EPS in the year immediately prior to the commencement of the Measurement Period to equal the EPS achieved in the final year of the Measurement Period. The EPS will be calculated as follows for each year of the calculation: NPAT EPS ÷ Time Weighted Average Issued Shares ● NPAT in any period relating to the plan will be signed off by the Board. This will also include “base” capex budgeted to achieve the budgeted NPAT. ● Any capex acquired above budget will require the target NPAT adjusted for the relevant measurement years at a required return of 40% weighted post tax for the time available (i.e. above budget capex 40% return time available during year). ● If any M&A activity occurs, the NPAT will be adjusted in consultation with the Board. ● The Board has discretion regarding whether or not to approve adjustments relating to NPAT at each measurement period. Gateway TSR and EPS Performance Rights are not subject to a gate, however, vesting above Target in any years will be subject to the Boards discretionary approval. Measurement Period and vesting dates 2025 plan: 1 July 2022 to 30 June 2025 (3 years) 2026 plan: 1 July 2023 to 30 June 2026 (3 years) 2027 plan: 1 July 2024 to 30 June 2027 (3 years) Each grant is tested on the grant performance hurdles criteria at the end of the measurement period. Vesting for each successful tranche occurs only after the signed audited financial statements are lodged with the Australian Stock Exchange relevant to each plan. Acrow Annual Report 2025 | 31
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Remuneration Report – Audited (continued) For the year ended 30 June 2025 Long Term Variable Remuneration Plan (LTVR) Aspect Plan, Offers and Comments Retesting Retesting is not contemplated under the Plan Rules. Amount payable for grants No amount is payable by participants for grants of Performance Rights. Exercise of Grants Participants will be required to submit an Exercise Notice in respect of vested performance rights in order to convert them to Shares. Each Right has a Term of 15 years from the Grant Date and if not exercised within that Term the Rights will lapse. Performance Assessments and Award Outcomes At the end of each performance period, the Remuneration and Nomination Committee assesses the relevant performance measures and determines the extent to which the awards should vest. Payment is made by the issuing or transfer of shares. Cessation of Employment During a Measurement Period In the event of cessation of employment due to dismissal for cause, all entitlements in relation to the Measurement Period are forfeited. In the event of cessation of employment due to resignation, all entitlements in relation to the Measurement Period are forfeited, unless the termination is classified as “good leaver” in the discretion of the Board, in which case the Board may make an award at the time of the termination, or assess outcomes at the normal time, following the termination. Change of Control If a change of control occurs prior to the vesting of an award, then the Board may determine in its absolute discretion whether all or some of a participant’s unvested award vest, lapse, is forfeited, or continues. 5. Proforma Executive Remuneration for FY2025 (non-statutory disclosure) – unaudited The disclosures required under the Corporations Act (including regulations) and prepared in accordance with applicable accounting standards, do not provide shareholders with an understanding of the intended remuneration in a given year. For example, the LTVR disclosed is not reflective of the remuneration opportunity for the year being reported on, due to the requirements of AASB2. Therefore, the following table is provided to ensure that shareholders have an accurate understanding of the Board’s intention regarding the remuneration offered to executives during FY2025. The values presented reflect the remuneration for a full year i.e. ignoring any part-year reporting impact. Position Incumbent Year Fixed Package including Super1 Target STI2 LTVR Opportunity Total Value of Package Executive Director and Chief Executive Officer Steven Boland 2025 $664,482 $265,793 $442,235 $1,372,510 2024 $632,350 $252,940 $567 ,261 $1,452,551 Chief Financial Officer Andrew Crowther 2025 $405,754 $121,726 $175,539 $703,019 2024 $370,996 $111,299 $172,576 $654,871 1 Package includes car allowance and superannuation. 2 With Steven Boland (CEO), STI is capped at 40% of his package; with Andrew Crowther (CFO) STI is capped at 30% of his package subject to achieving individual KPIs and performance targets. 32 | Acrow Annual Report 2025
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6. Vested/Awarded Incentives and Remuneration Outcomes in Respect of the Completed FY2025 Period (non-statutory disclosure) – UNAUDITED The statutory disclosure requirements and accounting standards make it difficult for shareholders to obtain a clear understanding of what the actual remuneration outcomes for executives were in relation to a given reporting period. The following table brings these outcomes back to the year of performance outcome to which the award outcome relates, and which is the reporting period, i.e. LTI is presented as being part of the remuneration for the year during which performance testing was completed. STI and LTI Outcomes Position Incumbent Year Fixed Package including Super1 Total STI Awarded Following Completion of the Financial Year (cash)2 LTVR Value3 Total Remun- eration Package (TRP) Gain on Vested LTI from Change in Value During Vesting Period4Amount Amount Vested % Forfeited % Amount Executive Director and Chief Executive Officer Steven Boland 2025 $664,482 $120,000 45% 55% $567 ,261 $1,351,743 $574,284 2024 $632,350 $214,500 85% 15% $602,889 $1,449 ,739 $345,713 Chief Financial Officer Andrew Crowther 2025 $405,754 $45,000 37% 63% $172,576 $623,330 $280,544 2024 $370,996 $67 ,800 61% 39% $209 ,104 $647 ,900 $230,388 1 Package paid includes car allowance and superannuation. 2 This is the value of the total STI award calculated and payable in the next reporting year. 3 This is the value of LTIs that vested in the reporting year. For Steven Boland, 1,074,294 units of performance rights vested and exercised; and for Andrew Crowther, 426,426 performance rights vested and exercised in FY2025. 4 This is the number of LTI units that exercised in the reporting year, multiplied by the 5-day VWAP share price on the date of vesting less exercise price and the value of LTIs when granted. Details regarding the assessments of performance that gave rise to the short-term incentive bonus outcomes for FY2025 are given below. Acrow Annual Report 2025 | 33
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Remuneration Report – Audited (continued) For the year ended 30 June 2025 7 . Performance Outcomes for FY2025 7 .1 Company Performance The following outlines the performance of the Company over the FY2021 and FY2025 period in accordance with the requirements of the Corporations Act: Corporate Performance Measures FY End Date Revenue Profit/(loss) after Tax Share Price Change in Share Price Total Dividend per Share1 Short Term Change in (SP Increase + Dividends) Amount % 30-Jun-25 $265,117 ,827 $23,274,399 $0.990 ($0.075) $0.059 ($0.016) (2%) 30-Jun-24 $215,256,023 $25,559 ,299 $1.065 $0.285 $0.056 $0.341 44% 30-Jun-23 $168,494,966 $23,457 ,040 $0.780 $0.275 $0.032 $0.307 61% 30-Jun-22 $148,345,521 $15,694,168 $0.505 $0.130 $0.024 $0.154 41% 30-Jun-21 $105,743,523 $3,962,998 $0.375 $0.060 $0.018 $0.078 25% 1 Dividends paid are the cash amount (post franking). 7 .2 Links Between Performance and Reward Including STI and LTVR Determinations The remuneration of executive KMP is intended to be composed of three parts as outlined earlier, being: ● Fixed Package, which is not intended to vary with performance, but which tends to increase as the scale of the business increases (i.e. following success), ● STI which is intended to vary with indicators of annual Company and individual performance, and ● LTVR which is also intended to deliver a variable reward based on long-term measures of Company performance. If STI is achieved, it is paid after the end of the financial period it related to. This level of potential award was considered appropriate under the STI process as it stood at the time and strongly linked to performance. Following the end of FY2025, reports on the Company’s activities during the year were prepared for the Board. The Board then assessed the extent to which expectations had been met or exceeded in relation to the Company and each role, to calculate the total award payable. This included assessed NPAT, underlying EBITDA and EPS growth. During the reporting period, grants of equity were made in relation to the LTVR scheme as part of remuneration for FY2025 but did not vest due to the presence of the long- term measurement period and vesting conditions that are yet to be completed/assessed. 7 .3 Links Between Company Strategy and Remuneration The Company intends to attract the superior talent required to successfully implement the Company’s strategies at a reasonable and appropriately variable cost by: ● positioning Fixed Packages (the fixed element) around relevant market data benchmarks when they are undertaken, and ● supplementing the Fixed Package with at-risk remuneration and incentives that motivate executive focus on: – short to mid-term objectives linked to the strategy via annual performance assessments, and – long term value creation for shareholders by linking a material component of remuneration to those factors that shareholders have expressed should be the long-term focus of executives and the Board, such as share price appreciation. To the extent appropriate, the Company links strategic implementation and measures of success of the strategy, directly to incentives in the way that performance is assessed. 34 | Acrow Annual Report 2025
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8. KMP Equity 8.1 Number of equities granted as remuneration Only selected employees have been granted performance rights under the long-term variable remuneration (LTVR) plan during the year, changes during the year and the balance held at reporting date are as follows. Executives: FY2025 Number Held at 1 July 2024 Granted FY 25 Forfeited Vested and Exercised Vested and Remaining Unexercised Purchase / (Disposal) Others Number Held at 30 June 2025 Name Instrument Number Date Granted Number Number Number Number Number Number Number Steven Boland Performance Rights 2,303,862 06-Nov-24 551,066 (320,984) (1,074,294) – – – 1,459 ,650 Unrestricted Shares 5,017 ,768 – – – 1,074,294 – (440,000) – 5,652,062 Andrew Crowther Performance Rights 910,129 06-Nov-24 226,238 (127 ,410) (426,426) – – – 582,531 Unrestricted Shares 991,387 – – – 426,426 – (200,022) – 1,217 ,791 TOTALS 9 ,223,146 777 ,304 (448,394) – – (640,022) – 8,912,034 Acrow Annual Report 2025 | 35
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Remuneration Report – Audited (continued) For the year ended 30 June 2025 FY2024 Number Held at 1 July 2023 Granted FY 24 Forfeited Vested and Exercised Vested and Remaining Unexercised Purchase / (Disposal) Others Number Held at 30 June 2024 Name Instrument Number Date Granted Number Number Number Number Number Number Number Steven Boland Performance Rights 2,148,588 21-Aug-23 & 20-Dec-23 1,229 ,568 – (1,074,294) – – – 2,303,862 Unrestricted Shares 5,813,474 – – – 1,074,294 – (1,870,000) – 5,017 ,768 Andrew Crowther Options 300,000 – – (133,929) (166,071) – – – – Performance Rights 845,090 21-Aug-23 & 20-Dec-23 483,703 – (418,664) – – – 910,129 Unrestricted Shares 1,006,652 – – – 584,735 – (600,000) – 991,387 TOTALS 10,113,804 1,713,271 (133,929) – – (2,470,000) – 9 ,223,146 36 | Acrow Annual Report 2025
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NED’s: FY2025 Number Held at 1 July 2024 Granted FY 25 Forfeited Vested and Exercised Vested and Remaining Unexercised Purchase / (Disposal) Others Number Held at 30 June 2025 Name Instrument Number Date Granted Number Number Number Number Number Number Number Peter Lancken Unrestricted Shares 12,395,826 – – – – – 252,979 – 12,648,805 David Moffat Unrestricted Shares 441,208 – – – – – – – 441,208 Melanie Allibon (retired on 26 February 25) Unrestricted Shares 200,000 – – – – – – – 200,000 Laurie Lefcourt Unrestricted Shares 10,000 – – – – – – – 10,000 James Scott (joined on 1 March 25) Unrestricted Shares – – – – – – – – – TOTALS 13,047 ,034 – – – – – 252,979 – 13,300,013 FY2024 Number Held at 1 July 2023 Granted FY 24 Forfeited Vested and Exercised Vested and Remaining Unexercised Purchase / (Disposal) Others Number Held at 30 June 2024 Name Instrument Number Date Granted Number Number Number Number Number Number Number Peter Lancken Unrestricted Shares 11,770,826 – – – – – 625,000 – 12,395,826 David Moffat Unrestricted Shares 416,208 – – – – – 25,000 – 441,208 Melanie Allibon Unrestricted Shares 200,000 – – – – – – – 200,000 Laurie Lefcourt Unrestricted Shares 10,000 – – – – – – – 10,000 TOTALS 12,397 ,034 – – – – – 650,000 – 13,047 ,034 Acrow Annual Report 2025 | 37
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Remuneration Report – Audited (continued) For the year ended 30 June 2025 8.2 Value of equities granted as remuneration Executives Value of long-term variable remuneration (LTVR) expensed in current year on grants issued in FY2025 and prior years. FY2025 2025 Equity Grants Type Grant Date Expiry Date Fair Value per Unit Number of units Total Value at Grant Value Expensed in Previous Years Value Expensed in FY 25 Max Value to be Expensed in Future Years Min Value to be Expensed in Future YearsName Role Steven Boland Executive Director and Chief Executive Officer Performance Rights 21-Aug-23 21-Aug-38 0.6292 320,984 $201,962 $93,396 $108,566 – – 21-Aug-23 21-Aug-38 0.7485 320,984 $240,272 $111,113 ($111,113) – – 20-Dec-23 20-Dec-38 0.4813 293,800 $141,414 $29 ,568 $55,919 $55,927 $55,927 20-Dec-23 20-Dec-38 0.1382 293,800 $40,596 $8,490 $16,057 $16,049 – 06-Nov-24 05-Nov-39 0.4026 275,533 $110,930 – $27 ,101 $83,829 $83,829 06-Nov-24 05-Nov-39 0.3670 275,533 $101,121 – $24,704 $76,417 – Andrew Crowther Chief Financial Officer Performance Rights 21-Aug-23 21-Aug-38 0.6292 127 ,411 $80,167 $37 ,073 $43,094 – – 21-Aug-23 21-Aug-38 0.7485 127 ,410 $95,373 $44,104 ($44,104) – – 20-Dec-23 20-Dec-38 0.4813 114,441 $55,080 $11,517 $21,782 $21,781 $21,781 20-Dec-23 20-Dec-38 0.1382 114,441 $15,816 $3,307 $6,254 $6,255 – 06-Nov-24 05-Nov-39 0.4026 113,119 $45,542 – $11,126 $34,416 $34,416 06-Nov-24 05-Nov-39 0.3670 113,119 $41,515 – $10,142 $31,373 – TOTALS 2,490,575 $1,169 ,788 $338,568 $169 ,528 $326,047 $195,953 38 | Acrow Annual Report 2025
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FY2024 2024 Equity Grants Type Grant Date Expiry Date Fair Value per Unit Number of units Total Value at Grant Value Expensed in Previous Years Value Expensed in FY 24 Max Value to be Expensed in Future Years Min Value to be Expensed in Future YearsName Role Steven Boland Executive Director and Chief Executive Officer Performance Rights 15-Nov-22 30-Jun-37 0.5608 537 ,147 $301,206 $301,206 – – – 15-Nov-22 30-Jun-37 0.5616 537 ,147 $301,683 $301,683 – – – 15-Nov-22 30-Jun-37 0.5228 537 ,147 $280,826 $107 ,500 $173,326 – – 15-Nov-22 30-Jun-37 0.5333 537 ,147 $286,435 $109 ,647 $176,788 – – Performance Rights 21-Aug-23 21-Aug-38 0.6292 320,984 $201,962 – $93,396 $108,566 $108,566 21-Aug-23 21-Aug-38 0.7485 320,984 $240,272 – $111,113 $129 ,159 – 20-Dec-23 20-Dec-38 0.4813 293,800 $141,414 – $29 ,568 $111,846 $111,846 20-Dec-23 20-Dec-38 0.1382 293,800 $40,596 – $8,490 $32,106 – Andrew Crowther Chief Financial Officer Options 16-Jul-19 16-Jul-24 0.0361 300,000 $10,843 $10,843 – – – 16-Jul-19 16-Jul-24 0.0561 300,000 $16,816 $16,816 – – – 16-Jul-19 16-Jul-24 0.0710 300,000 $21,301 $21,301 – – – 16-Jul-19 16-Jul-24 0.0826 300,000 $24,782 $24,510 $272 – – Performance Rights 01-Jun-22 30-Jun-37 0.4289 209 ,332 $89 ,788 $89 ,788 – – – 01-Jun-22 30-Jun-37 0.4516 209 ,332 $94,534 $94,534 – – – 01-Jun-22 30-Jun-37 0.3801 213,213 $81,034 $42,010 $39 ,024 – – 01-Jun-22 30-Jun-37 0.4293 213,213 $91,542 $47 ,457 $44,085 – – Performance Rights 21-Aug-23 21-Aug-38 0.6292 127 ,411 $80,167 – $37 ,073 $43,094 $43,094 21-Aug-23 21-Aug-38 0.7485 127 ,411 $95,373 – $44,104 $51,269 – 20-Dec-23 20-Dec-38 0.4813 114,441 $55,080 – $11,517 $43,563 $43,563 20-Dec-23 20-Dec-38 0.1382 114,481 $15,816 – $3,307 $12,509 – TOTALS 5,906,949 $2,471,470 $1,167 ,295 $772,063 $532,112 $307 ,069 Acrow Annual Report 2025 | 39
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Remuneration Report – Audited (continued) For the year ended 30 June 2025 9 . NED Fee Policy Current Rates for and Fee Limit The Remuneration and Nominations Committee took advice from an external remuneration consultant that was not the auditor, and these adjustments have been implemented to ensure we continue to attract the highest talent in the Director pool. The following table outlines the NED fee policy rates that were applicable since September 2023. Director Directors Fees/Executive Remuneration Chairperson $150,000 Other $90,000 Chair of Audit & Risk Committee Additional $12,000 Chair of Remuneration Committee Additional $12,000 40 | Acrow Annual Report 2025
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10. Remuneration Records for FY2025 – Statutory Disclosures 10.1 Senior Executive Remuneration The following table outlines the remuneration received and receivable by Senior Executives of the Company prepared according to statutory disclosure requirements and applicable accounting standards: FY2025 Name Role Short Term Sub-total Post employ- ment Other long term Share based payments Total % perf- ormance basedSalary STI Non-cash Rights Options Steven Boland Executive Director and Chief Executive Officer $634,550 $120,000 $26,858 $781,408 $29 ,932 $74,900 $121,234 $0 $1,007 ,474 24% Andrew Crowther Chief Financial Officer $375,822 $45,000 $167 $420,989 $29 ,932 $40,418 $48,294 $0 $539 ,633 17% Total KMP $1,010,372 $165,000 $ 2 7, 0 2 5$1,202,397 $59 ,864 $115,318 $169 ,528 $0 $1,547 ,107 STI of $165,000 is for FY2025, payable in FY2026. FY2024 Name Role Short Term Sub-total Post employ- ment Other long term Share based payments Total % perf- ormance basedSalary STI Non-cash Rights Options Steven Boland Executive Director and Chief Executive Officer $604,951 $214,500 $20,942 $840,393 $27 ,399 $89 ,637 $592,681 – $1,550,110 52% Andrew Crowther Chief Financial Officer $343,597 $67 ,800 $512 $411,909 $27 ,399 $37 ,050 $179 ,110 $272 $655,740 38% Total KMP $948,548 $282,300 $21,454 $1,252,302 $54,798 $126,687 $771,791 $272 $2,205,850 STI of $282,300 for FY2024 paid in FY2025. Acrow Annual Report 2025 | 41
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Remuneration Report – Audited (continued) For the year ended 30 June 2025 10.2 NED Remuneration Remuneration received by non-executive directors in FY2025 and FY2024 are disclosed below: FY2025 Name Role Short Term Share based payments Total % performance basedBoard Fees Rights Options Peter Lancken Chairman $150,000 – – $150,000 – David Moffat Independent NED $90,030 – – $90,030 – Melanie Allibon (retired on 26 February 25) Independent NED $102,034 – – $102,034 – Laurie Lefcourt Independent NED $102,000 – – $102,000 – James Scott (joined on 1 March 25) Independent NED $34,000 – – $34,000 – Total NED $478,064 – – $478,064 – FY2024 Name Role Short Term Share based payments Total % performance basedBoard Fees Rights Options Peter Lancken Chairman $147 ,667 – – $147 ,667 – David Moffat Independent NED $88,333 – – $88,333 – Melanie Allibon Independent NED $100,000 – – $100,000 – Laurie Lefcourt Independent NED $100,000 – – $100,000 – Total NED $436,000 – – $436,000 – Employment Terms for Key Management Personnel 10.3 Service Agreements A summary of contract terms in relation to executive KMP is presented below: Name Position Held at Close of FY2025 Employing Company Duration of Contract Period of Notice Termination Payments From Company From KMP Steven Boland Executive Director and Chief Executive Officer Acrow Limited Open-ended 6 months 6 months Up to 6 months' Total Remuneration* Andrew Crowther Chief Financial Officer Acrow Limited Open-ended 6 months 6 months Up to 6 months' Total Remuneration* * The treatment of incentives in the case of termination is addressed in separate sections of this report that give details of incentive design. On appointment to the Board, all non-executive directors enter into a service agreement with the Company in the form of a letter of appointment. The letter summarises the Board policies and terms, including compensation relevant to the office of the director. No contracts apply to the appointment of non-executive KMP. 42 | Acrow Annual Report 2025
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11. External Remuneration Consultant Advice During the reporting period, the Board engaged external remuneration consultants, Godfrey Remuneration Group to provide KMP remuneration recommendations relating to remuneration post the date of this report including the long-term variable remuneration referred to in subsequent events in the Directors Report. The Board reviewed the recommendations from the external remuneration advisor directly and independent of executive management and are satisfied the recommendations were made free of undue influence of the relevant KMP’s. The Board has adopted a policy to govern any such future engagements, the details of which will be disclosed in future Remuneration Reports should they arise. End of audited Remunerations Report. Acrow Annual Report 2025 | 43
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Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2025 In dollars Note 2025 2024 Continuing operations Revenue 4 241,660,570 193,114,919 Other income 5 15,959 ,079 15,037 ,150 Personnel expenses (109 ,462,903) (80,623,830) Sub-contract labour costs (15,168,492) (10,846,322) Inventory purchased, net of changes in finished goods (36,142,474) (29 ,878,964) Depreciation (23,297 ,769) (20,027 ,484) Acquisition, restructuring and process integration costs (5,377 ,643) (3,165,796) Freight costs (3,811,033) (3,003,585) Change in fair value of contingent considerations1 30 (2,972,108) - IT and telecommunication expenses (2,713,140) (2,288,128) Insurance expenses (2,644,154) (2,112,241) Amortisation of intangible assets 16 (1,867 ,836) (899 ,400) Expected credit loss provision and bad debt expense (800,001) (2,053,183) Other expenses 6 (8,628,338) (7 ,218,979) Profit before net finance costs and income tax 44,733,758 46,034,157 Finance costs 7 (9 ,904,138) (7 ,558,627) Net finance costs (9 ,904,138) (7 ,558,627) Profit before income tax 34,829 ,620 38,475,530 Income tax expense 8 (11,555,221) (13,120,987) Profit from continuing operations 23,274,399 25,354,543 Other comprehensive income Items that may be reclassified to profit/(loss) Foreign operations – foreign currency translation differences – 204,756 Total comprehensive income for the year 23,274,399 25,559 ,299 Earnings per share from continuing operations Basic EPS (cents per share) 25 7 .57 8.94 Diluted EPS (cents per share) 25 7 .42 8.66 1 Contingent consideration includes an additional earn-out of paid to MI Scaffold sellers due to EBITDA outcome exceeding performance target. The above statement should be read in conjunction with the accompanying notes. 44 | Acrow Annual Report 2025
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Statement of Financial Position As at 30 June 2025 In dollars Note 2025 2024 Current assets Cash and cash equivalents 10 8,021,894 5,593,504 Trade and other receivables 11 74,233,607 53,735,780 Inventories 12 13,854,843 14,009 ,225 Contract assets 13 2,715,784 43,299 Prepayments and other assets 13 7 ,254,122 4,370,251 Total current assets 106,080,250 77 ,752,059 Non-current assets Property, plant and equipment 14 211,309 ,203 170,421,375 Right-of-use lease assets 15 35,605,491 28,061,115 Goodwill 16 31,244,480 19 ,971,167 Other intangible assets 16 21,903,627 16,239 ,924 Total non-current assets 300,062,801 234,693,581 Total assets 406,143,051 312,445,640 Current liabilities Bank overdraft 10 22,180,492 3,597 ,901 Trade payables and accrued expenses 17 27 ,133,102 21,535,436 Other payables 17 8,544,756 1,737 ,880 Financial liabilities 30 119 ,551 – Employee benefits 18 11,871,085 7 ,903,481 Lease liabilities 15 7 ,997 ,913 5,727 ,741 Loans and borrowings 19 18,144,791 21,485,595 Current tax liabilities 21 3,285,375 2,029 ,461 Total current liabilities 99 ,277 ,065 64,017 ,495 Non-current liabilities Other payables 17 2,438,311 3,980,903 Employee benefits 18 1,085,218 778,061 Lease liabilities 15 32,558,118 26,734,220 Loans and borrowings 19 90,898,454 49 ,147 ,807 Provisions 20 1,010,774 569 ,274 Deferred income tax liability 21 29 ,786,996 26,257 ,568 Total non-current liabilities 157 ,777 ,871 107 ,467 ,833 Total liabilities 257 ,054,936 171,485,328 Net assets 149 ,088,115 140,960,312 Equity Issued capital 93,753,176 89 ,458,912 Reserves 3,317 ,453 4,674,077 Retained earnings 52,017 ,486 46,827 ,323 Total equity 149 ,088,115 140,960,312 The above statement should be read in conjunction with the accompanying notes. Acrow Annual Report 2025 | 45
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Statement of Changes in Equity For the year ended 30 June 2025 In dollars Share capital Share based option payments reserve Foreign currency translation reserve Retained earnings Total equity Balance at 30 June 2023 61,809 ,122 4,022,214 53,803 36,998,532 102,883,671 Total comprehensive income for the period Profit for the year – – – 25,559 ,299 25,559 ,299 Other comprehensive loss – – (53,803) – (53,803) Total comprehensive income – – (53,803) 25,559 ,299 25,505,496 Transactions with owners of the company Shares issued net of transaction costs 21,717 ,785 – – – 21,717 ,785 Shares issued as consideration on business combination, net of cost 2,000,000 – – – 2,000,000 Dividends paid to shareholders – – – (15,730,508) (15,730,508) Shares issued under dividend reinvestment plan ("DRP") 1,429 ,359 – – – 1,429 ,359 Listing costs (121,264) – – – (121,264) Equity settled share-based payments – 3,275,773 – – 3,275,773 Transfer of option reserves to share capital 2,623,910 (2,623,910) – – – Total transactions with owners of the company 27 ,649 ,790 651,863 – (15,730,508) 12,571,145 Balance at 30 June 2024 89 ,458,912 4,674,077 – 46,827 ,323 140,960,312 Total comprehensive income for the period Profit for the year – – – 23,274,399 23,274,399 Total comprehensive income – – – 23,274,399 23,274,399 Shares issued as consideration on business combination, net of cost 270,712 – – – 270,712 Performance Rights forfeited – (14,480) – 14,480 – Dividends paid to shareholders – – – (18,098,716) (18,098,716) Shares issued under dividend reinvestment plan ("DRP") 1,552,696 – – – 1,552,696 Listing costs (37 ,041) – – – (37 ,041) Equity settled share-based payments – 1,165,753 – – 1,165,753 Transfer of LTVRs reserves to share capital 2,150,975 (2,150,975) – – – Shares issued to executives 356,922 (356,922) – – – Total transactions with owners of the company 4,294,264 (1,356,624) – (18,084,236) (15,146,596) Balance at 30 June 2025 93,753,176 3,317 ,453 – 52,017 ,486 149 ,088,115 The above statement should be read in conjunction with the accompanying notes. 46 | Acrow Annual Report 2025
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Statement of Cash Flows For the year ended 30 June 2025 In dollars Note 2025 2024 Cash flows from operating activities Receipts from customers 137 ,854,973 93,216,751 Receipts on lease revenue 105,272,357 103,806,520 Payments to suppliers and employees (201,424,439) (156,828,902) Cash generated from operations 41,702,891 40,194,369 Income tax paid (9 ,794,397) (7 ,652,062) Net cash inflow from operating activities 31,908,494 32,542,307 Cash flows from investing activities Proceeds from disposal of property, plant and equipment 5 23,522,638 22,197 ,226 Purchase of property, plant and equipment 14 (49 ,763,053) (40,210,211) Consideration paid for controlled entities, net of cash acquired (21,318,373) (30,985,697) Contingent payment on acquisitions1 30 (5,409 ,964) – Net cash outflow from investing activities (52,968,752) (48,998,682) Cash flows from finance activities Proceeds from issue of shares – 21,717 ,785 Listing costs (37 ,041) (121,264) Proceeds from borrowings 68,188,005 47 ,706,226 Repayment of borrowings (29 ,778,162) (28,363,357) Repayment of lease liabilities 15 (9 ,148,235) (6,224,654) Dividends paid net of DRP 22 (16,546,020) (14,301,149) Finance costs paid (7 ,772,490) (6,901,008) Net cash inflow from financing activities 4,906,057 13,512,579 Net decrease in cash and cash equivalents (16,154,201) (2,943,796) Cash and cash equivalents as at 1 July 1,995,603 4,939 ,396 Effect of exchange rate fluctuations on cash held – 3 Cash and cash equivalents at the end of the year 10 (14,158,598) 1,995,603 1 Relates to cash payment on earn-out paid to MI Scaffold and Benchmark sellers due to EBITDA outcome exceeding performance targets set. The above statement should be read in conjunction with the accompanying notes. Acrow Annual Report 2025 | 47
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Notes to the Consolidated Financial Statements For the year ended 30 June 2025 1. Reporting entity 2. Basis of preparation 3. Material accounting policies 4. Revenue 5. Other income 6. Other expenses 7 . Finance costs 8. Income tax expense 9 . Acquisitions 10. Cash and cash equivalents 11. Trade and other receivables 12. Inventories 13. Contract assets, prepayments and other assets 14. Property, plant and equipment 15. Leases 16. Intangible assets 17 . Trade and other payables 18. Employee benefits 19 . Loans and borrowings 20. Provisions 21. Deferred income tax liability and current income tax liability 22. Issued capital 23. Capital management 24. Share-based payments 25. Earnings per share 26. Capital commitments and contingencies 27 . Reconciliation of cash flows from operating activities 28. Remuneration of auditors 29 . Key management personnel and related parties 30. Financial risk management 31. Group entities 32. Deed of cross guarantee 33. Parent entity disclosures 34. Operating segments 35. Subsequent events 1. Reporting entity Acrow Limited (“Acrow”) is a for profit company limited by shares, incorporated and domiciled in Australia. Its shares are traded on the Australian Securities Exchange under the issuer code “ACF”. The consolidated financial statements of Acrow for the year ended 30 June 2025 comprise of the Company and its controlled entities (“the Group”). Acrow is a provider of smart integrated construction systems across formwork, industrial services and commercial scaffolding in Australia. The construction services work includes hiring formwork, falsework, scaffolding and screen equipment and undertaking sales of formwork and scaffolding related consumables. Acrow also operates hire, sales and labour in the industrial services sector. Acrow’s Annual Reports for prior reporting periods are available upon request from the Group’s registered office located at 2A Mavis Street, Revesby NSW 2212, Australia or at www.acrow.com.au. 2. Basis of preparation (a) Basis of accounting The consolidated financial statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The consolidated financial statements comply with International Financial Reporting Standards (IFRS) adopted by the International Accounting Standards Board (IASB) and were authorised for issue by the Board of Directors on 29 September 2025. Details of the Group’s material accounting policies are included in note 3. (b) Basis of measurement The consolidated financial statements have been prepared on accrual basis and are based on historical costs, modified where applicable by the measurement at fair value. (c) Functional and presentation currency The consolidated financial statements are presented in Australian dollars, which is the Group’s functional currency. (d) Use of estimates and judgements The preparation of consolidated financial statements in conformity with AASBs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. 48 | Acrow Annual Report 2025
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Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Information about significant areas of estimations, uncertainties and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements include the following: Accounting estimate and judgements Note Revenue 4 Acquisitions 9 Trade and other receivables 11 Inventories 12 Property, plant and equipment 14 Leases 15 Intangible assets 16 Employee benefits 18 Provisions 20 Deferred income tax liability and current income tax liability 21 Share-based payments 24 The accounting policies below have been applied consistently to all periods presented in these consolidated financial statements and have been applied consistently by the Group. (e) Comparative information Where applicable, comparative information is reclassified to comply with disclosure requirements and improve comparability. (f) Rounding Acrow is a company of the kind referred to in the Australian Securities and Investments Commission (ASIC) Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, dated 24 March 2016 and in accordance with that Legislative Instrument, amounts in these consolidated financial statements have been rounded off to the nearest dollar and are shown as such, unless stated otherwise. 3. Material accounting policies (a) Basis of consolidation The consolidated financial statements have been prepared by aggregating the financial statements of all the entities that comprise the Group, being Acrow Limited and its controlled entities. All inter-entity balances and transactions are eliminated in these consolidated financial statements. (i) Business combinations Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group. Control is the power to govern the financial and operating policies of an entity to obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting rights that currently are exercisable. The Group measures goodwill at the acquisition date as: ● the fair value of the consideration transferred; plus ● the recognised amount of any non-controlling interests in the acquiree; plus, if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree; less ● the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed. When the excess is negative, a bargain purchase gain is recognised immediately in the statement of profit or loss. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in the statement of profit or loss. Costs related to the acquisition, other than those associated with the issue of debt or equity securities that the Group incurs in connection with a business combination are expensed as incurred. Any deferred consideration payable is recognised at fair value at the acquisition date. If the contingent consideration is classified as equity, it is not remeasured, and settlement is accounted for within equity, otherwise subsequent changes to the fair value of the contingent consideration are recognised in the statement of profit or loss. Where an asset only purchase is made and deferred consideration is contingent to certain conditions being met, the amount payable is assumed to be at the maximum probable level, such that the capitalisation of assets includes the full value of the purchase price. Any reduction in final deferred consideration paid are to be recognised in the statement of profit or loss as when the conditions resulting in the reduction in deferred consideration have occurred. (ii) Subsidiaries Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Acrow Annual Report 2025 | 49
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 (b) Foreign currency Transactions in foreign currencies are translated to the functional currency of the Group at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or (loss) on monetary items is the difference between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the year. Foreign currency differences arising on retranslation are recognised in the statement of profit or loss, except for qualifying cash flow hedges to the extent the hedge is effective, which are recognised in other comprehensive income. (c) Financial instruments (i) Non-derivative financial assets The Group initially recognises receivables on the date that they are originated. All other financial assets (including assets held at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends to either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Group has the following non-derivative financial assets: receivables and cash and cash equivalents. Receivables A receivable is recognised when performance obligations are met or as lease income is earned as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. Receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at the transaction price plus any directly attributable transaction costs. Receivables are measured at amortised cost using the effective interest method, less any impairment losses. Cash and cash equivalents Cash and cash equivalents comprise cash at bank, cash on hand and cash equivalents, net of bank overdrafts. Cash equivalents represent highly liquid investments which are readily convertible to cash. (ii) Non-derivative financial liabilities The Group initially recognises debt securities issued on the date that they originated. All other financial liabilities (including liabilities held at fair value through profit or loss) are recognized initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument. The Group derecognises financial liability when its contractual obligations are discharged or cancelled or expire. Financial liabilities are recognized initially at fair value plus any directly attributable transaction costs. Financial liabilities are measured at amortized cost using the effective interest rate method. Non-derivative financial liabilities comprise loans and borrowings, trade and other payables. Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows. (iii) Issued capital Ordinary shares Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity, net of any tax effects. (d) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the 3. Material accounting policies (continued) 50 | Acrow Annual Report 2025
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site on which they are located, and capitalised borrowing costs (see below). Cost also may include transfers from other comprehensive income of any gain or (loss) on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The gains and (losses) on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within other income or other expenses in the statement of profit or loss. (ii) Subsequent costs The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Group, and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in the statement of profit or loss as incurred. (iii) Depreciation Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately. Depreciation is recognised in the statement of profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. Right-of-use lease assets are depreciated over the shorter of the lease term (including any contractual extensions that are expected to be exercised) and useful life, on a straight-line basis, unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. The expected useful lives for depreciation purposes are as follows: ● Hire equipment 1 – 33 years ● Leasehold improvements over the lease term ● Plant and equipment 2 – 20 years Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate. (iv) Hire equipment loss provision A hire equipment loss provision is recognised to cover the expected loss of equipment on hire. The provision is based on historical experience of unrecoverable losses incurred on the return of hire equipment from customers. (e) Intangible assets (i) Goodwill All business combinations are accounted for by applying the acquisition method. Goodwill represents the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired. Goodwill is stated at costs less any accumulated impairment losses. (ii) Intangible assets Customer relationships and brand names, acquired during business combinations, are valued at cost. They are amortised on a straight-line basis over an estimated useful life of between nine to twelve years. These are amortised on a straight-line basis in the Statement of Profit or Loss and Other Comprehensive Income from date of acquisition. (f) Inventories Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the weighted average cost principle, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. (g) Impairment (i) Non-derivative financial assets Non-derivative financial assets comprise trade and other receivables and cash and cash equivalents. Non-derivative financial instruments excluding financial assets are recognised initially at fair value plus transaction costs. Non-derivative financial assets are measured at amortised cost less impairment losses. A financial asset is recognised if the Group becomes a party to the contractual provisions of the asset. Financial assets are derecognised if the Group’s contractual rights to the cash flows from the financial assets expire or if the Group transfers the financial asset to Acrow Annual Report 2025 | 51
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 another party without retaining control or substantially all risks and rewards of the asset. The Group recognises its financial assets at either amortised cost or fair value, depending on the contractual cash flow characteristics of the financial assets. The classification of financial assets that the Group held at the date of initial application was based on the facts and circumstances of the financial assets held at that date. Financial assets recognised at amortised cost are measured using the effective interest method, net of any impairment loss. Financial assets other than those classified as financial assets recognised at amortised cost are measured at fair value with any changes in fair value recognised in the statement of profit or loss. Receivables For trade receivables, the Group conducts an ongoing assessment of expected credit losses (ECL) by analysing actual loss experience of the Group, arrears, and other inputs such as exposure or timing. The assessment is broken down into 4 sectors including Industrial Services, Civil Infrastructure, Commercial, and Residential. These sectors are then analysed in a set of 5 stages ranging from currently due receivables to above 90-days due receivables. The Group also separately quantifies receivables due from entities in liquidation/default. The Group provides for a loss allowance equivalent to the lifetime expected credit losses from initial recognition of those receivables. Losses are recognised in the statement of profit or loss and other comprehensive income and reflected in an allowance account against trade receivables. When a subsequent event causes the amount of impairment loss to decrease, the decrease is reversed through the Statement of Profit or Loss and Other Comprehensive Income. (ii) Non-financial assets The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment, and if any such indication exists, then the asset’s recoverable amount is estimated. Goodwill arising from acquisitions, which forms part of non-financial assets and has an indefinite useful life or is not yet available for use, is tested for impairment annually at the same time each year, or more frequently if events or changes in circumstances indicate that it may be impaired. The basis for measurement and key management assumptions applied in determining the recoverable amount are set out in Note 16. An impairment loss is recognised in the statement of profit or loss if the carrying amount of an asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. (h) Employee benefits (i) Defined contribution plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as an employee benefit expense in the statement of profit or loss in the periods during which services are rendered by employees. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available. Contributions to a defined contribution plan that are due more than 12 months after the end of the period in which the employees render the service are discounted to their present value. (ii) Other long-term employee benefits The Group’s net obligation in respect of long-term employee benefits other than defined benefit plans is the amount of future benefit that employees have earned in return for their service in the current and prior periods plus related on-costs. The benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on high quality corporate bonds that have maturity dates approximating the terms of the Group’s obligations. The calculation is performed using the projected unit credit method. 3. Material accounting policies (continued) 52 | Acrow Annual Report 2025
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(iii) Termination benefits Termination benefits are recognised as an expense when the Group is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the Group has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If termination benefits are payable more than 12 months after the reporting period, the termination benefits are discounted to their present value. (iv) Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. (v) Share-based payments The Group provides benefits to selected employees in the form of share-based payment transactions, whereby employees render services in exchange for options and/or performance rights over ordinary shares. The cost of the share-based payments is measured by reference to the fair value at the date at which they are granted and amortized over the expected vesting period with a corresponding increase in share capital reserve. If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Non-market vesting conditions are included in assumptions about the number of options that are expected to become exercisable. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any adjustment to cumulative share-based compensation resulting from a revision is recognised in the current period. The number of vested options ultimately exercised by holders does not impact the expense recorded in any period. Upon exercise of share options, the proceeds received, net of any directly attributable transaction costs, are allocated to share capital. The fair value of share-based payments is appraised at grant date in accordance with AASB 2 Share-based Payments. These are independently determined using a pricing model that considers the exercise price, the terms of the payment, the vesting and performance criteria, the impact of the dilution, the non-tradeable nature of the payment, the share price at grant date, the expected price volatility of the underlying share, the comparative share market indices, the expected dividend yield and the risk-free interest rate for the term of the share-based payment. (i) Provisions A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. (i) Restructuring A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring either has commenced or has been announced publicly. Future operating losses are not provided for. (ii) Onerous contracts A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the fa value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Group recognises any impairment loss on the assets associated with that contract. (iii) Make good A provision for make good is measured at the fair value of the cost of restoring leased properties to their original condition, at the conclusion of the lease. (j) Revenue The Group is a national provider of smart integrated construction systems across formwork, industrial services and commercial scaffolding. The Group engages in provision of equipment on a hire-out basis with related Acrow Annual Report 2025 | 53
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 services which may include labour, transport, material handling, design and engineering services, assembly of main screens and consumable sales. Key estimates and judgement Management acknowledges that judgement is required when assessing whether an arrangement should be recognised in full or in part under AASB 16 Leases or AASB 15 Revenue from contracts with customers. Management’s assessment of the arrangement considers whether there are lease components or non-lease components and whether interdependency exist between services and equipment hire arrangements. The following table summarises the revenue streams of the Group, its applicable accounting standards, the performance obligations and timing in which revenue is recognised. Revenue stream Notes Equipment hire revenue Equipment hire includes design and engineering services and cartage fees. Revenue from hire of equipment provides customer the right to control the use of identified equipment is recognised under AASB 16 over the term of the lease term as the customer simultaneously receives and consumes the benefits. When design and engineering services and holding and cartage fees are considered to be integral to and inseparable from hire of equipment, the arrangement is accounted for as a single lease component, reflecting its economic substance. Consideration is recognised on a straight line-basis over the lease term. Labour services Relates to revenue generated from provision of labour to transport, configure, install, assemble and dismantle Acrow’s equipment and systems. In the circumstances where this income is not integral to the lease arrangement, the revenue is recognised over time as the service is provided. Cartage services Recognised at a point in time when the performance obligation is satisfied, being the delivery or collection of goods. Sale of consumables Revenue generated from sale of building materials and consumables such as accessories, bolts, plates, safety components and other site-specific materials. The performance obligation is satisfied at a point in time when control of goods passes onto the customer. Other services Relates to the design and engineering where not integral to and is separable from hire of equipment. These services do not form part of lease component and therefore are recognised at a point in time when the services are provided. 3. Material accounting policies (continued) (k) Finance income and finance costs Finance income comprises interest income on funds deposited. Interest income is recognised as it accrues in the statement of profit or loss, using the effective interest method. Finance costs comprise interest expenses on loans and borrowings, lease liabilities and the unwinding of the discount on provisions. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in the statement of profit or loss using the effective interest method. (l) Tax Tax expense comprises current and deferred tax. Current and deferred tax are recognised in the statement of profit or loss, except to the extent that it relates to items recognised directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or (loss) for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax payable also includes any tax liability arising from the declaration of dividends. Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or (loss). 54 | Acrow Annual Report 2025
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Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, only to the extent that it is probable that sufficient future taxable profits will be available to utilise them. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. (m) Lease accounting The Group as a lessee The Group makes the use of leasing arrangements principally for the provision of the warehouse/office space, forklift equipment, motor vehicles and printers. The Group does not enter into sale and leaseback arrangements. All the leases are negotiated on an individual basis and contain a wide variety of different terms and conditions such as purchase options and escalation clauses. The Group assesses whether a contract is or contains a lease at inception of the contract. A lease conveys the right to direct the use and obtain substantially all of the economic benefits of an identified asset for a period of time in exchange for consideration. Only motor vehicle lease contracts contain both lease and non-lease components. These non-lease components are usually associated with servicing and repair contracts. Measurement and recognition of leases as a lessee At lease commencement date, the Group recognises a right-of-use asset and a lease liability in its consolidated statement of financial position. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred by the Group, an estimate of any costs to dismantle and remove the asset at the end of the lease, and any lease payments made in advance of the lease commencement date (net of any incentives received). The Group depreciates the right-of-use asset on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term including any lease extensions that are likely to be exercised. The Group also assesses the right-of-use asset for impairment when such indicators exist. At the commencement date, the Group measures the lease liability at the present value of the lease payments unpaid at that date, discounted using the Group’s incremental borrowing rate because as the lease contracts are negotiated with third parties it is not possible to determine the interest rate that is implicit in the lease. The incremental borrowing rate is the estimated rate that the Group would have to pay to borrow the same amount over a similar term, and with similar security to obtain an asset of equivalent value. Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed), variable payments based on an index or rate, amounts expected to be payable under a residual value guarantee and payments arising from options reasonably certain to be exercised. Subsequent to initial measurement, the liability will be reduced by lease payments that are allocated between repayments of principal and finance costs. The finance cost is the amount that produces a constant periodic rate of interest on the remaining balance of the lease liability. The lease liability is reassessed when there is a change in the lease payments. Changes in lease payments arising from a change in the lease term or a change in the assessment of an option to purchase a leased asset. The revised lease payments are discounted using the Group’s incremental borrowing rate at the date of reassessment when the rate implicit in the lease cannot be readily determined. The amount of the remeasurement of the lease liability is reflected as an adjustment to the carrying amount of the right-of-use asset. The exception being when the carrying amount of the right-of-use asset has been reduced to zero then any excess is recognised in profit or loss. Payments under leases can also change when there is either a change in the amounts expected to be paid under residual value guarantees or when future payments change through an index or a rate used to determine those payments, including changes in market rental rates following a market rent review. The remeasurement of the lease liability is dealt with by a reduction in the carrying amount of the right-of-use asset to reflect the full or partial termination of the lease for lease modifications that reduce the scope of the lease. Any gain or loss relating to the partial or full termination of the lease is recognised in profit or loss. The right-of-use asset is adjusted for all other lease modifications. The Group has elected to account for low-value assets using the practical expedients. These leases relate to mobile IT devices such as computer monitors, laptops and mobile telephones. Instead of Acrow Annual Report 2025 | 55
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 recognising a right-of-use asset and lease liability, the payments in relation to these are recognised as an expense in profit or loss on a straight-line basis over the lease term. The Group as a lessor As a lessor the Group classifies its leases as either operating or finance leases. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of the underlying asset and classified as an operating lease if it does not. (n) Accounting standards and interpretations issued but not yet effective Certain new or revised accounting standards and amendments to Australian Accounting Standards have been published that are not mandatory for the current reporting period and have not been early adopted by the Group. AASB 2024-2 Amendments to Australian Accounting Standards – Classification and Measurement of Financial Instruments. This standard is not expected to have material impact on the entity in the current or future reporting periods and on foreseeable future transactions. AASB 18 Presentation and Disclosure in Financial Statements. This new standard is not expected to have an impact of the recognition and measurement of assets, liabilities, income and expenses, however its impacts on the presentation and disclosure are expected to be pervasive. In particular, the Statement of Profit or Loss and Comprehensive Income and providing management-defined performance measures within the financial statements. The Group expects AASB 18 will have a material impact on the Group’s presentation of its Consolidated Profit or Loss. 4. Revenue In dollars 2025 2024 Revenue from contracts with customers Labour services transferred over time 91,472,931 49 ,929 ,174 Cartage services at a point in time 9 ,583,846 7 ,770,923 Consumable sales and other services transferred at a point in time 44,901,651 41,045,258 145,958,428 98,745,355 Revenue from operating leases Hire of equipment 95,702,142 94,369 ,564 241,660,570 193,114,919 5. Other income In dollars 2025 2024 Disposal of property, plant and equipment Ex-hire equipment Proceeds 23,457 ,257 22,141,104 Carrying amount (7 ,527 ,406) (7 ,125,478) 15,929 ,851 15,015,626 Non-hire equipment Proceeds 65,381 56,122 Carrying amount (36,153) (34,598) 29 ,228 21,524 Net gain on disposal of property, plant and equipment 15,959 ,079 15,037 ,150 3. Material accounting policies (continued) 56 | Acrow Annual Report 2025
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6. Other expenses In dollars 2025 2024 Property costs (1,565,536) (1,157 ,746) Audit, tax and legal expenses (1,557 ,091) (1,202,058) Travelling expenses (1,331,273) (881,977) Utilities (1,008,771) (981,943) Plant & equipment operating expenses (792,216) (468,322) Motor vehicle expenses (734,194) (392,923) Other low value and short-term leases (635,186) (709 ,490) Repair & maintenance (581,215) (693,230) Others (422,856) (579 ,260) (8,628,338) (7 ,066,949) From discontinued operations Cost of divestment – (152,030) Total other expenses (8,628,338) (7 ,218,979) 7 . Finance costs In dollars 2025 2024 Finance costs Unwinding interest on deferred consideration (61,794) (657 ,618) Interest expense on financial liabilities (7 ,481,734) (4,685,934) Interest expense on leases (2,069 ,855) (1,689 ,667) Borrowing costs (290,755) (525,408) Net finance costs from continuing operations (9 ,904,138) (7 ,558,627) Acrow Annual Report 2025 | 57
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 8. Income tax expense In dollars 2025 2024 Current income tax expense (11,393,730) (12,053,238) Deferred income tax expense (414,482) (1,018,816) Under provision for income tax in prior year (189 ,391) (48,933) Initial recognition of previously unrecognised deferred income tax expense 442,382 – Income tax expense attributable to profit (11,555,221) (13,120,987) In dollars 2025 2024 Profit before income tax 34,829 ,620 38,475,530 Income tax expense using the Group’s domestic tax rate (30%) (10,448,886) (11,542,659) Income tax effects of amounts which are not deductible / (taxable) in calculating taxable income: Recognition of previously unrecognised deferred tax not brought to account 442,382 – Non-deductible share-based payment expense (349 ,726) (982,731) Non-deductible acquisition expense (112,949) (269 ,192) Non-deductible impairment expense – (46,758) Other non-deductible expenses (885,021) (385,277) Under-provision for income tax in prior year (189 ,391) (48,933) Difference in tax rate on acquisition of base rate entities – (260,000) Utilisation of prior year tax losses unrecognised (11,630) 414,563 Income tax expense attributable to profit (11,555,221) (13,120,987) 9 . Acquisitions Australasian Training & Education Centre Pty Ltd (“ATEC”) On 12 February, Acrow acquired 100% of the issued shares of Australasian Training & Education Centre Pty Ltd (ACN 159 933 370) for a consideration amounting to $850,000, followed by a total of $250,000 deferred payments consisted of three tranches of $83,333, payable at end of three 12-month periods. ATEC is a nationally accredited provider offering licences and certifications for high-risk work, safety, scaffolding, mining, drilling, first aid, CPR, working at heights, confined spaces, asbestos handling, machinery operation, and cargo transport. The main facility is in Brisbane, with a new training centre opening in Mackay, Queensland in August 2025. Above Scaffolding Pty Ltd and Above Scaffolding Services Pty Ltd (“Above Scaffolding”) On 30 April 2025, Acrow acquired 100% of the issued shares of Above Scaffolding Pty Ltd (ABN 073 575 201) and Above Scaffolding Services Pty Ltd (ACN 168 409 041). Above Scaffolding provides engineered scaffolding and access solutions throughout NSW. The acquired entity has extensive history in servicing blue chip clients in the infrastructure, industrial, construction and maritime markets including Australian Defence Force, Transport for New South Wales and Sydney Water. Details of the consideration and the fair values of tangible and intangible assets acquired, liabilities assumed, and goodwill estimated are set out in the following tables. The consideration includes a $12,298,000 completion payment, and up to $6,000,000 in contingent consideration across two tranches, each contingent upon Above Scaffolding’s EBITDA exceeding $4,200,000 in the respective 12-month Earn Out Periods. The fair values of these contingent consideration are $2,587 ,259 and $2,230,395, discounted using Acrow’s post-tax cost of debt based on estimated EBITDA. Acquisition and related costs are accounted for in the Consolidated Statement of Profit or Loss and Other Comprehensive Income, amounting to $291,465 for the year. 58 | Acrow Annual Report 2025
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Above Scaffolding Pty Ltd and Above Scaffolding Services Pty Ltd In dollars Completion payment 12,298,000 Contingent consideration 4,817 ,654 Total consideration at fair value 17 ,115,654 Assets Cash and cash equivalents 902,862 Trade and other receivables 2,134,490 Prepayments and other assets 205,796 Accrued income 729 Property, plant and equipment 7 ,103,701 Right-of-use lease assets 238,084 Intangible assets – customer relationships 4,673,000 Total assets 15,258,662 Liabilities Trade payables 1,309 ,934 Employee benefits 592,125 Current tax liabilities (521,435) Lease liabilities 238,084 Provisions 122,000 Deferred income tax liabilities 3,073,270 Total liabilities 4,813,978 Fair value of net assets acquired 10,444,684 Purchase consideration transferred 17 ,115,654 Less: Fair value of net identifiable assets acquired (10,444,684) Goodwill on acquisition 6,670,970 Consideration transferred in cash 12,298,000 Cash acquired net of loan (902,862) Net cash outflow on acquisition 11,395,138 The residual amount of goodwill represents the value of the workforce which would be time consuming and costly to recreate and the future growth in revenue expected from new customers. The goodwill recognised is not deductible for tax purposes. Estimates and judgments were made to determine the fair value of intangibles, plant and equipment and provisions. Two qualified and specialised valuers were engaged to assess these values. The valuation of intangibles, being customer relationships, were determined using a combination of income and cost approaches, with the Multi-Period Excess Earnings Method being the predominant driver. Key assumptions used in determining the fair values included revenue associated with customer contracts, contract renewal periods, customer attrition rates and discount rates. For plant and equipment, another valuer was engaged to determine the depreciated replacement cost of the assets. The depreciated replacement costs reflect adjustments for physical deterioration, as well as functional and economic obsolescence. The Consolidated Statement of Comprehensive Income includes the following revenue and net profit resulting from the acquisition made since 1 May 2025: Revenue 3,632,054 Net profit after tax 1,213,620 If the acquisition had taken place at the beginning of the financial year (1 July 2024), the following revenue and net profit after tax would have been included: Revenue 14,159 ,231 Net profit after tax 2,466,483 Acrow Energy and Infrastructure Services Australia and Acrow Energy and Infrastructure Services Australia (Gladstone) (“AEIS”) On 1 May 2025, Acrow acquired 100% of the issued shares of Brand Energy and Infrastructure Services (Australia) Pty Ltd (ACN 106 939 262) and Brand Energy and Infrastructure Services (Gladstone) Pty Ltd (ACN 075 145 470). The name “Brand” was replaced with “Acrow” pursuant to share sales agreements in May 2025. Acrow Energy and Infrastructure Services has a strong operational presence in Hunter Valley which provides geographical benefits in securing jobs within the region with a smaller presence within Gladstone which provides direct synergies with recently acquired MI Scaffolding, Benchmark Scaffolding and Above Scaffolding. The acquisition brings shared access to specialised assets such as QuikDeck and extends Acrow’s capabilities to service customers. Purchase price allocation was completed during the year. The fair values of purchase considerations, tangible and intangible assets, and liabilities assumed were determined and set out in the following tables. The total consideration is a $13,403,831 completion cash payment. Acquisition and related costs are accounted for in the Consolidated Statement of Profit or Loss and Other Comprehensive Income amounting to $625,293 for the year. Acrow Annual Report 2025 | 59
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 Acrow Energy and Infrastructure Services group of companies In dollars Completion payment 13,403,831 Total consideration at fair value 13,403,831 Assets Cash and cash equivalents 2,574,255 Trade and other receivables 1,903,730 Inventory 7 ,693 Prepayments and other assets 1,027 ,211 Property, plant and equipment 9,975,092 Right-of-use lease assets 2,103,740 Total assets 17 ,591,721 Liabilities Trade payables 1,687 ,900 Employee benefits 1,594,784 Lease liabilities 2,103,740 Provisions 306,000 Deferred income tax liabilities 655,069 Total liabilities 6,347 ,493 Fair value of net assets acquired 11,244,228 Purchase consideration transferred 13,403,831 Less: Fair value of net identifiable assets acquired (11,244,228) Goodwill on acquisition 2,159 ,603 Consideration transferred in cash 13,558,831 Cash acquired net of loan (2,574,255) Net cash outflow on acquisition 10,984,576 The residual amount of goodwill represents the value of the workforce which would be scarce to recruit, time consuming to train and costly to recreate. The goodwill recognised is not deductible for tax purposes. The Consolidated Statement of Comprehensive Income includes the following revenue and net profit resulting from the acquisition made since 1 May 2025: Revenue 4,139 ,089 Net loss after tax (32,082) If the acquisition had taken place at the beginning of the financial year (1 July 2024), the following revenue and net profit after tax would have been included: Revenue 24,455,870 Net profit after tax 620,740 9 . Acquisitions (continued) 10. Cash and cash equivalents In dollars 2025 2024 Cash at bank 8,021,894 5,593,504 Bank overdraft (22,180,492) (3,597 ,901) (14,158,598) 1,995,603 60 | Acrow Annual Report 2025
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11. Trade and other receivables In dollars 2025 2024 Trade receivables 78,092,348 57 ,695,819 Expected credit loss provision (3,858,741) (3,960,039) 74,233,607 53,735,780 Movement in the expected credit loss provision: In dollars 2025 2024 At 1 July Opening balance (3,960,039) (2,489 ,689) Recognised in business combination (771,386) (850,000) Expected credit loss recognised during the year (800,001) (2,050,000) Receivables written off during the year 1,672,685 1,429 ,650 Balance at 30 June (3,858,741) (3,960,039) In dollars Current More than 30 days More than 60 days More than 90 days Default Total 2025 Expected credit loss rate 0.01% 0.04% 0.48% 10.87% 100.00% Gross carrying amount 40,812,956 16,711,669 3,916,771 14,385,951 2,265,001 78,092,348 Lifetime expected credit loss 4,484 6,849 18,953 1,563,454 2,265,001 3,858,741 2024 Expected credit loss rate 0.01% 0.08% 0.57% 22.13% 100.00% Gross carrying amount 37 ,030,724 8,468,598 3,326,491 6,344,335 2,525,670 57 ,695,819 Lifetime expected credit loss 4,484 6,849 18,953 1,404,083 2,525,670 3,960,039 12. Inventories In dollars 2025 2024 Finished goods 13,854,843 14,009 ,225 13,854,843 14,009 ,225 13. Contract assets, prepayments and other assets In dollars 2025 2024 Current Contract assets 2,715,784 43,299 2,715,784 43,299 Other receivables 419 ,589 183,272 Prepayments 6,834,533 4,186,979 7 ,254,122 4,370,251 Acrow Annual Report 2025 | 61
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 14. Property, plant and equipment In dollars Land and buildings Plant and equipment Hire equipment Total Cost Balance at 1 July 2023 521,014 14,475,101 154,183,704 169 ,179 ,819 Acquisition through business combinations 67 ,588 7 ,915,356 20,345,463 28,328,407 Additions 27 ,166 1,374,371 40,099 ,121 41,500,658 Disposals – (42,413) (10,230,995) (10,273,408) Balance at 30 June 2024 615,768 23,722,415 204,397 ,293 228,735,476 Cost Balance at 1 July 2024 615,768 23,722,415 204,397 ,293 228,735,476 Acquisition through business combinations 36,372 5,178,003 22,831,507 28,045,882 Additions 16,652 2,077 ,525 47 ,668,876 49 ,763,053 Disposals – (3,951,779) (7 ,263,624) (11,215,403) Balance at 30 June 2025 668,792 27 ,026,164 267 ,634,052 295,329 ,008 Depreciation and impairment losses Balance at 1 July 2023 409 ,402 11,916,754 25,264,114 37 ,590,270 Acquisition through business combinations 11,027 2,560,601 6,749 ,270 9 ,320,898 Depreciation for the year 19 ,837 1,012,532 12,193,449 13,225,818 Disposals – (7 ,815) (1,815,070) (1,822,885) Balance at 30 June 2024 440,266 15,482,072 42,391,763 58,314,101 Balance at 1 July 2024 440,266 15,482,072 42,391,763 58,314,101 Acquisition through business combinations 28,626 3,169 ,002 10,452,989 13,650,617 Depreciation for the year 21,712 1,247 ,469 14,381,977 15,651,158 Disposals – (1,024,845) (2,626,999) (3,651,844) Hire equipment loss provision – – 55,773 55,773 Balance at 30 June 2025 490,604 18,873,698 64,655,503 84,019 ,805 Carrying amounts At 1 July 2023 111,612 2,558,346 128,919 ,590 131,589 ,548 At 30 June 2024 175,502 8,240,343 162,005,530 170,421,375 At 1 July 2024 178,189 8,152,465 202,978,549 211,309 ,203 At 30 June 2025 178,189 8,152,465 202,978,549 211,309 ,203 Property, plant and equipment are at times sold prior to the end of its useful life either at the request of the customers or due to loss. “Loss on Hire” revenue are charged as Other Income (see note 5) where the customers are liable. On acquisition of property plant and equipment there is no intention to dispose through sale. 15. Leases The Acrow group leases various properties, forklifts, motor vehicles and printers. Property lease terms are up to 10 years and often include extension options, forklift lease terms are up to 7 years, motor vehicle lease terms are from 1 to 3 years, whilst all printers are for a 5-year lease term. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes. Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the statement of profit or loss and other comprehensive income over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period. 62 | Acrow Annual Report 2025
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The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. Payments on IT equipment including laptops and mobile devices have been treated as low-value assets, are recognised on a straight-line basis as an expense in the statement of profit or loss and other comprehensive income. Lease amounts recognised in the Statement of Financial Position: In dollars 2025 2024 Right-of-use assets Properties 32,571,835 25,121,006 Forklifts and office equipment 2,290,338 2,411,475 Motor vehicles 743,318 528,634 Total right-of-use assets 35,605,491 28,061,115 Lease liabilities Current 7 ,997 ,913 5,727 ,741 Non-current 32,558,118 26,734,220 Total lease liabilities 40,556,031 32,461,961 Additions to the right-of-use assets during FY2025 were $11,665,427 (FY2024: $13,674,854). Lease amounts recognised in the Statement of Profit or Loss and Other Comprehensive Income: In dollars 2025 2024 Depreciation charge for right-of-use assets: Properties 6,507 ,955 5,898,848 Forklifts and office equipment 792,501 627 ,702 Motor vehicles 346,154 275,117 Total depreciation charge for right-of-use assets 7 ,646,610 6,801,667 Lease payments include: ● Variable lease payments that are based on an index or rate; ● Amounts expected to be payable by the lessee under residual value guarantees; ● The exercise price of a purchase option if Acrow is reasonably certain to exercise that option; ● Fixed payments (including in-substance fixed payments), less any lease incentives receivable; and ● Payment of penalties for terminating the lease, if the lease term reflects Acrow exercising that option. Lease payments are discounted using the interest rate implicit in the lease, if determinable or at the Group’s incremental borrowing rate. In dollars 2025 2024 Lease amounts included in the Statement of Cash Flows Lease payments 9 ,148,235 6,224,654 Interest expense (included in finance costs) 2,069 ,855 1,689 ,666 Total amount paid 11,218,090 7 ,914,320 Acrow Annual Report 2025 | 63
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 Lease payments not recognised as liabilities The Group has elected not to recognise a lease liability for low value leases (where an asset is valued at AUD10,000). Payments for these are recognised on a straight-line basis as an expense in the statement of profit or loss. Low value assets are predominately portable IT and telecommunication equipment. The undiscounted cash flows on the remaining lease term at the reporting date are as follow: In dollars 2025 2024 Less than one year 10,349 95,324 Between one and five years 5,904 16,253 16,253 111,577 16. Intangible assets Goodwill Goodwill represents the excess of the cost of acquisition over the fair value of the identifiable assets and liabilities acquired. It is not amortised but is tested annually for impairment, or whenever any indicators of impairment exist. For purpose of the impairment test, Goodwill is allocated to the lowest cash-generating unit (“CGU”) within the Group at the level in which it is monitored for internal management purposes. Acrow conducts annual impairment tests on goodwill. These tests are performed by assessing the recoverable amount of each CGU. The recoverable amount is the higher of the CGU’s fair value less costs of disposal and value in use. The value in use calculations is determined using discounted cash flow projections, which applies a one-year budget that has been approved by the board of directors, with a subsequent four-years of forecast growth applied. Cash flows beyond the five-year period are extrapolated using the cash flows for year 5 and the estimated long-term growth rates. Management judgment is required to forecast future cash flows and to determine an appropriate discount rate to calculate their recoverable amount. If an impairment loss is identified, it is recognised in the statement of profit or loss when the carrying amount of an asset exceeds its recoverable amount. The carrying value of goodwill is allocated to the Group’s CGU identified as follows: Goodwill allocation to CGU Groups In dollars 2025 2024 Acrow Screens companies 7 ,301,902 7 ,301,902 Unispan Group of companies 126,802 126,802 MI Scaffold Pty Ltd 9 ,563,986 9 ,563,986 Benchmark Scaffolding & Edge Protection Pty Ltd 4,380,670 2,978,477 Australasian Training & Education Centre Pty Ltd 1,040,547 – Above Scaffold group of companies 6,670,970 – Acrow Energy and Infrastructure Services group of companies (formerly known as Brand Energy and Infrastructure Services group of companies) 2,159 ,603 – Total Goodwill 31,244,480 19 ,971,167 In dollars 2025 2024 Opening goodwill balance 19 ,971,167 7 ,428,704 Additions 11,273,313 12,542,463 Impairment – – Closing balance 31,244,480 19 ,971,167 15. Leases (continued) 64 | Acrow Annual Report 2025
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Key assumptions for those CGUs that have significant goodwill allocated to them In dollars 2025 2024 Average growth rate 1 – 5 years – Acrow Screens 1.1% 4.1% Average growth rate 1 – 5 years – MI Scaffold 5.2% 9. 6% Average growth rate 1 – 5 years – Benchmark 1.7% – Average growth rate 1 – 5 years – Above Scaffold 7. 3 % – Terminal growth rate – Acrow Screens 1.4% 1.4% Terminal growth rate – MI Scaffold 2.3% 2.3% Terminal growth rate – Benchmark 1.4% – Terminal growth rate – Above Scaffold 3% – Pre-tax discount rate 15.8% 18.3% Pre-tax discount rate – Above Scaffold 14.8% – The discount rate incorporates the perspective of market participants, including expectations about future economic conditions and the risks associated with the assets and cash flow of the relevant CGUs. The terminal growth rate is the weighted average growth rate used to extrapolated cash flows beyond the budget period and are consistent with forecasts published in relevant industry reports. The average growth rate for each CGU is based upon the past performance and management’s expectations of market development and initiatives to drive incremental sales and maintain margins. Sensitivity Management has made judgements and estimates in respect of impairment testing of goodwill. Should these judgements and estimates not occur the resulting goodwill carrying amount may decrease. The impairment assessment is sensitive to movements in key assumptions including the discount rate applied and the average growth rates. Management has performed sensitivity analysis for these variables to determine if reasonable changes in the assumptions would cause the carrying amount of the above CGUs to exceed their recoverable amount. Under the sensitivity assumptions applied by management there is no impairment in any of the CGUs. Intangible assets 2025 In dollars Customer relationship Branding Software Total Carrying amount at beginning of the year 13,351,629 2,888,295 – 16,239 ,924 Additions 7 ,055,000 – 476,539 7 ,531,539 Amortisation (1,560,876) (306,960) – (1,867 ,836) Impairment – – – – Transfers – – – – Carrying amount at end of the year 18,845,753 2,581,335 476,539 21,903,627 At cost 21,124,696 3,069,628 476,539 24,670,863 Accumulated amortisation (2,278,943) (488,293) – (2,767 ,236) Accumulated impairment – – – – Total intangible assets 18,845,753 2,581,335 476,539 21,903,627 During the financial year, the Group has capitalised $476,539 in software development costs relating to the implementation of a new ERP system. The capitalised costs include consultancy fees, labour costs for the development and customisation of the software and have been assessed as directly attributable to preparing the software for its intended use in accordance with AASB 138. The software is not yet available for use, and its useful life is currently yet to be determined. At the balance date, there are no indicators of impairment. Acrow Annual Report 2025 | 65
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 2024 In dollars Customer relationship Branding Software Total Carrying amount at beginning of the year – – – – Additions 14,069 ,696 3,069,628 – 17 ,139 ,324 Amortisation (718,067) (181,333) – (899 ,400) Impairment – – – – Transfers – – – – Carrying amount at end of the year 13,351,629 2,888,295 – 16,239 ,924 17 . Trade payables and accrued expenses In dollars 2025 2024 Current trade payables Trade payables 17 ,318,222 9 ,921,557 Accrued expenses 9 ,814,880 11,613,879 27 ,133,102 21,535,436 Other payables MI Scaffold contingent consideration 3,807 ,477 2,359 ,740 MI Scaffold completion adjustment – (900,000) Benchmark deferred consideration 416,786 278,138 Benchmark contingent consideration 286,498 – Above Scaffolding completion adjustment 1,298,000 – Above Scaffolding contingent consideration 2,656,237 – ATEC deferred consideration 79 ,758 – 8,544,756 1,737 ,880 Non-current Other payables MI Scaffold contingent consideration – 3,732,609 Benchmark contingent consideration – 248,294 ATEC deferred consideration 143,606 – Above Scaffolding contingent consideration 2,294,705 – 2,438,311 3,980,903 Other payables represent the fair value of contingent considerations, deferred considerations and completion adjustments on the acquisitions of the acquired companies at balance date. 16. Intangible assets (continued) 66 | Acrow Annual Report 2025
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18. Employee benefits In dollars 2025 2024 Current Annual leave 5,348,138 3,394,848 Long service leave 3,272,222 2,342,376 Other employee benefits 3,250,725 2,166,257 11,871,085 7 ,903,481 Non-current Long service leave 1,085,218 778,061 All employees have defined contribution plans for superannuation and the expense recognised during the year was $7 ,107 ,284 (2024: $5,016,540). 19 . Loans and borrowings In dollars 2025 2024 Current 18,144,791 21,485,595 Non-current 90,898,454 49 ,147 ,807 109 ,043,245 70,633,402 Borrowings are represented by the following finance facilities: Secured amortising business loan was re-financed in September 2024 to optimise financial flexibility by securing lower margins, increasing headroom, and enhancing liquidity through conversion to an interest-only (non-amortising) structure with new limit of $53.0m (June 24: $47 .4m). 47 ,878,964 44,767 ,000 Headroom 5,121,036 – Secured $31,000,000 non-amortising, interest-only Business Loan Acquisition Facility was established on 30 September 2024 to support funding for future acquisitions. 25,848,878 – Headroom 5,151,122 – Equipment finance facility, revolving 3-year limit of $37 .0m (Jun 24 $27 .0m). 34,022,210 22,573,556 Headroom 2,977 ,790 4,426,444 Trade finance facility, revolving 180-day limit of $3.5m (Jun 24: $3.5m). 1,293,193 3,292,846 Headroom 2,206,807 207 ,154 Working capital facility, $41.5m (Jun 24: $16.5m) including $2.25m bank guarantee (Jun 24: $2.0m) and $39 .25m bank overdraft (Jun 24: $14.5m). 24,427 ,087 5,574,485 Headroom 17 ,072,913 10,925,515 Borrowings utilised 133,470,332 76,207 ,887 Headroom 32,529 ,668 15,559 ,113 Total accessible borrowing amount 166,000,000 91,767 ,000 Borrowings utilised and committed 133,470,332 76,207 ,887 Less: Bank overdraft recognised separately (22,180,492) (3,597 ,902) Less: Bank guarantee utilised not drawn (2,246,595) (1,976,583) Total Loans and Borrowings 109 ,043,245 70,633,402 Acrow Annual Report 2025 | 67
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 All borrowings are secured by interlocking guarantees where each company within the group jointly and severally guarantees the repayment of loans to the lending institution. All loans are secured over the assets and inventory of the Group. Covenants are reviewed half-yearly with the lender. The Group has complied with all the respective borrowing covenants throughout the year ended 30 June 2025. The covenant measures include the Equity ratio and Financial Debt to EBITDA ratio. Interest rates on Equipment finance are fixed but variable on all other loans and facilities. All are dependent on prevailing market rates and bank margins. All borrowing costs incurred in the year have been expensed. 20. Provisions In dollars 2025 2024 Make good provision movement during the year: Opening balance at 1 July 569 ,274 4 69, 2 74 Recognised in business combination 441,500 100,000 Closing balance at 30 June 1,010,774 569 ,274 A provision for make good is measured at the fair value of the cost of restoring leased properties to their original condition at the conclusion of the lease. No long term (greater than 12 months) new property lease had been entered into during the year that require further addition. 21. Deferred income tax liability and current income tax liability In dollars 2025 2024 Deferred income tax liability movement during the year: Opening balance at 1 July 26,257 ,569 9 ,907 ,149 Recognised in business combination 3,511,815 – Changes to estimates from prior years 181,449 9 ,975,826 Provisions (88,160) 628,694 Accruals 66,286 (214,518) Property, plant and equipment 867 ,699 247 ,277 Intangibles (560,351) 1,255,877 Revenue tax loss (6,929) (269 ,820) Initial recognition of previously unrecognised deferred income tax expense (442,382) 4,727 ,083 Closing balance at 30 June 29 ,786,996 26,257 ,568 Income tax liabilities Opening balance at 1 July 2,029 ,461 1,348,072 Recognised in business combination (487 ,297) 1,587 ,056 Changes to estimates from prior years 7,9 4 2 20,239 Tax paid (9 ,794,397) (7 ,652,062) Current tax liabilities 11,585,184 11,494,032 Utilization of tax loss (55,518) (4,767 ,876) Carried forward unpaid tax liabilities 3,285,375 2,029 ,461 19 . Loans and borrowings (continued) 68 | Acrow Annual Report 2025
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In dollars 2025 2024 Unrecognised deferred tax assets Deferred tax assets not recognised for the following items: Revenue tax losses 10,759,075 1,030,613 Capital losses 1,271,863 913,333 Temporary differences (1,013,352) 374,256 11,017 ,586 2,318,202 While tax losses and temporary differences do not expire under current tax legislation, deferred tax assets have not been recognised in respect of these items as certain subsidiaries have experienced several years without taxable income and therefore recovery is not considered probable. The tax losses do not expire under current tax legislation. The potential benefit of the deferred tax asset in respect of tax losses carried forward will only be obtained if: (i) The subsidiaries continue to derive future assessable income of a nature and an amount sufficient to enable the benefit to be realised; (ii) The subsidiaries continue to comply with the conditions for deductibility imposed by the law; (iii) No changes in tax legislation adversely affect the subsidiaries in realising the asset; and (iv) The subsidiaries pass the continuity of ownership test, or the same business test as outlined by the Australian Taxation Office. For FY2025, the Group has not recognised any deferred tax balances arising from the newly acquired subsidiary Acrow Energy & Infrastructure Services Australia Pty Ltd. This includes amounts pertaining to carry-forward tax losses giving rise to deferred tax assets and temporary differences giving rise to deferred tax liabilities. Recognition of the amounts is subject to satisfaction of aforementioned criteria and the probability of generating future taxable profits which management is currently reviewing. No amount has been recognised in the current financial year. 22. Issued capital In units 2025 2024 Number of shares On issue of 1 July 301,396,067 266,339 ,056 Issue of shares for cash – 25,395,663 Issue of DRP shares (i) 1,499 ,393 1,471,258 Issue of shares on acquisition of Benchmark – 1,773,994 Shares issued through conversion of performance rights (ii) 5,106,111 6,250,025 Exercise of share options – 166,071 308,001,571 301,396,067 (i) 754,196 units of ordinary shares were issued at $1.0604 per share following the FY2024 final dividend declaration pursuant to the Dividend Reinvestment Plan (DRP); 745,197 units of ordinary shares were issued at $1.0104 per share following the FY2025 interim dividend declaration also pursuant to the DRP. (iI) 5,106,111 units of ordinary shares were issued during the year through conversion of performance rights granted under the Long-Term Variable Remuneration (LTVR) plan. The holders of these shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at general meetings of the Group. Net tangible assets per ordinary share for the year ended 30 June 2025 are 41.20 cents (2024: 43.34 cents). Net tangible assets per share is calculated as net assets attributable to Acrow Limited shareholders, being $126.9m (2024: $131.0m) divided by the number of issued ordinary shares of 308.0m units (2024: 302.3m units). Acrow Annual Report 2025 | 69
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 Dividends Dividend distributions payable to equity shareholders are included in other liabilities when the dividends have been approved prior to the reporting date. The following dividends were declared and paid for by the Group during the year: In dollars 2025 2024 Dividends on ordinary shares declared and paid: Final dividend in respect of the previous reporting period: FY 24: 3.0 cents per share (FY23: 2.70 cents per share) – Paid in cash 8,389 ,653 6,647 ,372 – Paid via DRP 799 ,750 703,945 Interim dividend for the current reporting period: FY 25: 2.9 cents per share (FY24: 2.85 cents per share) – Paid in cash 8,156,367 7 ,653,777 – Paid via DRP 752,946 725,414 18,098,716 15,730,508 A 100% franked dividend of $9 ,189 ,403 for the year ended 30 June 2024 was paid on 29 November 2024 at 3.0 cents per share with 754,196 new shares issued at $1.0604 each as part of the DRP. A 100% franked interim dividend of $8,909 ,314 for FY 2025 was paid on 30 May 2025 at 2.9 cents per share with 745,197 new shares issued at $1.0104 as part of the DRP. Subsequent to the balance date, the Directors declared a dividend of 2.95 cents per share, 100% franked on 25 August 2025. The franking credit balance was $9 ,961,529 on 30 June 2025 (2024: $3,867 ,505). Share-based payments reserve The share-based payments reserve is used to recognize the grant date fair value of shares issued to employees and directors that have not yet been vested. 23. Capital management Management monitors the capital of the Group, in order to maintain a good debt to equity ratio, provide the shareholders with adequate returns and ensure that the Group can fund its operations and continue as a going concern. The Group’s debt and capital includes ordinary share capital and borrowings. There are no externally imposed capital requirements. Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share issues. 22. Issued capital (continued) 70 | Acrow Annual Report 2025
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24. Share-based payments The cost of share-based payments is recorded under personnel expenses in the statement of profit or loss and other comprehensive income. For FY2025, this totalled to $1,165,753 (2024: $3,275,773). Performance Rights Carried forward from FY2024, there were a total of 14,930,881 units of Performance Rights outstanding which were granted based on Earnings Per Share (EPS) and Total Shareholder Return (TSR) performance hurdles over FY2021 to FY2024 periods. Current year movements are summarised as follow: Long term variable incentives Measurement period FY2022 – 24 FY2025 FY2026 FY2027 Total Vesting status on 30 June 2025 Vested Unvested Unvested Unvested Outstanding as of 1 July 2024 6,900,427 4,159 ,690 3,870,764 – 14,930,881 Grants / (cancellations) of issues (i) 332,020 – – 3,747 ,368 4,079 ,388 Unvested or forfeiture (ii) – (2,102,970) (38,704) – (2,141,674) Vested and exercised as ordinary shares (iii) (5,106,111) – – – (5,106,111) Balance outstanding at 30 June 2025 2,126,336 2,056,720 3,832,060 3,747 ,368 11,762,484 (i) A total of 4,079 ,388 units of LTVRs had been granted in FY2025, of which 332,020 units on FY2024 measurement period were granted as compensation to senior managers of acquired entities; 3,747 ,368 units on FY2027 were granted to executives and senior managers based on Earnings Per Share (EPS) and Total Shareholder Return (TSR) performance hurdles. (ii) A total of 2,141,674 units were forfeited, out of which 2,102,970 relate to not meeting FY25 EPS targets of minimum 10% compound annual growth. (iii) 5,106,111 units were exercised; these include some of the units on FY2024 LTVRs that became vested and exercisable (vesting outcome were 100% on both TSR and EPS issues). The balance on all vested and exercisable LTVRs remaining were 2,126,336 units on balance date. Total number of outstanding performance rights on 30 June 2025 were 11,762,484 units (30 June 24: 14,930,881 units). Performance rights granted in FY2023 and FY2024 have the following terms: (i) Exercise price: nil; (ii) Conversion: upon vesting, conversion to shares on a 1 for 1 basis; (iii) Dividends: not entitled until performance rights are exercised; (iv) Vesting hurdles: a. 50% of each issue measured on Earnings per share (EPS) criteria specifically “Net profit after tax / Weighted average number of shares on issue”. i. A threshold cumulative return of 10% is required below which no vesting will occur. ii. A target return of 15% will vest 50% of performance rights and pro rata between 10% and 15%. iii. Above 15% return up to a maximum of 25% return the balance of the performance rights will vest on a pro rata basis. b. 50% of each issue measured on Total Shareholder return (TSR) criteria. This compares the share price and dividends through the measurement period to the ASX Small Industrials Index. i. A threshold cumulative return equal to the market is required below which no vesting will occur. ii. A target return of 130% of the index TSR will vest 50% of performance rights and pro rata between index return and 130% of index return. iii. Above 130% of index return up to a maximum of 160% index return the balance of the performance rights will vest on a pro rata basis. c. The performance rights will be measured between 1 July 2022 and 30 June 2025 for the 2025 issue and 1 July 2023 and 30 June 2026 for the 2026 issue. Performance rights granted in FY2025 have the same terms as FY2024 except for vesting hurdles on EPS criteria: a. 50% of each issue measured on Earnings per share (EPS) criteria specifically “Net profit after tax / Weighted average number of shares on issue”. i. A threshold cumulative return of 5% is required below which no vesting will occur. Acrow Annual Report 2025 | 71
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 ii. A target return of 15% will vest 50% of performance rights and pro rata between 5% and 8%. iii. Above 8% return up to a maximum of 15% return the balance of the performance rights will vest on a pro rata basis. b. The performance rights will be measured between 1 July 2024 and 30 June 2027 for the 2027 issue. The model inputs for the performance rights vesting FY2025 granted to executives and senior managers on 21 August 2023 included: a) Exercise price: nil b) Share price at grant date of 21 August 2023 was $0.91 c) Expected price volatility between 16.2% and 35.6% – based on comparable companies d) Expected dividend yield 4.8% e) Risk-free interest rate at 4.3% f) Grant date fair values were 78.40 cents per unit on TSR grants and 78.56 cents per unit on EPS grants The model inputs for the performance rights vesting FY2026 granted to executives and senior managers on 20 December 2023 included: f) Exercise price: nil g) Share price at grant date of 20 December 2023 was $0.99 h) Expected price volatility between 17 .2% and 35.8% – based on comparable companies i) Expected dividend yield 5.5% j) Risk-free interest rate at 3.7% k) Grant date fair values were 48.13 cents per unit on TSR grants and 13.82 cents per unit on EPS grants The model inputs for the performance rights vesting FY2027 granted to executives and senior managers on the 6 November 2024 included: a) Exercise price: nil b) Share price at grant date of 6 November 2024 was $1.07 c) Expected price volatility between 15.3% and 49 .0% – based on comparable companies d) Expected dividend yield 5.6% e) Risk-free interest rate 4.0% f) Grant date fair values were 40.26 cents per unit on TSR grants and 36.70 cents per unit on EPS grants 24. Share-based payments (continued) 25. Earnings per share Basic EPS is calculated by dividing profit for the year attributable to ordinary equity holders of the Parent by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is calculated by dividing the net profit attributable to ordinary equity holders of the Parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. The following table reflects the income and shares data used in the basic and diluted EPS computations: In dollars 2025 2024 Earnings from continuing and discontinuing operations Profit excluding significant items 34,343,035 32,999 ,572 Net share-based payments and significant items* (11,068,636) (7 ,440,273) Net profit after tax 23,274,399 25,559 ,299 * Significant items include contingent consideration paid to MI Scaffold, acquisition, share-based payments, restructuring and process integration costs, and amortisation of intangibles; and for FY2024, significant items includes share-based payments, acquisition and rebranding costs and amortisation of intangibles. 72 | Acrow Annual Report 2025
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2025 2024 Number of ordinary shares: Weighted average number of ordinary shares used in the calculation of basic EPS 307 ,461,450 285,910,110 Weighted average number of ordinary shares used in the calculation of diluted EPS 313,539 ,355 294,996,650 Basic EPS excluding significant items (cents per share) 11.17 11.54 Diluted EPS excluding significant items (cents per share) 10.95 11.19 Basic EPS (cents per share) 7. 5 7 8.94 Diluted EPS (cents per share) 7 .42 8.66 In dollars 2025 2024 Earnings from continuing operations Profit excluding significant items 34,343,035 32,794,816 Net share-based payments and significant items (11,068,636) (7 ,288,243) Net profit after tax 23,274,399 25,506,573 Basic EPS (cents per share) 7. 5 7 8.92 Diluted EPS (cents per share) 7 .42 8.65 26. Capital commitments and contingencies In dollars 2025 2024 Capital commitments Capital expenditure contracted for at the reporting date but not recognised as liabilities as follows: Plant and equipment 926,681 6,893,981 Acrow Annual Report 2025 | 73
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 27 . Reconciliation of cash flows from operating activities In dollars 2025 2024 Cash flows from operating activities Profit 23,274,399 25,354,543 Adjustments for: ● Depreciation and impairment 23,279 ,232 20,027 ,485 ● Gain on disposal of assets (15,959 ,079) (15,037 ,150) ● Share-based payment 1,165,753 3,275,773 ● Amortisation of intangibles 1,867 ,836 899 ,400 ● Contingent considerations 2,972,108 – ● Non-operating cash adjustments (476,539) 150,953 Net changes in working capital: ● Trade and other receivables (16,731,646) (7 ,488,278) ● Inventories 162,076 (2,611,741) ● Contract assets (2,139 ,990) (485) ● Prepayments and other assets (2,025,603) 278,012 ● Trade payables and accrued expenses 2,591,809 (5,887 ,798) ● Provisions 2,143,625 554,043 ● Increase in financial liabilities 119 ,551 – ● Current income tax liabilities 1,777 ,349 (905,669) ● Increase in deferred income tax liabilities (16,525) 6,374,592 Cash generated from operating activities 22,004,356 24,983,680 Finance costs 9 ,904,138 7 ,558,627 Net cash from operating activities 31,908,494 32,542,307 28. Remuneration of auditors During the year the following fees were paid or payable for services provided by Grant Thornton Audit Pty Ltd (GT) as the auditor of the parent entity. In dollars 2025 2024 Audit and review of financial reports Group and controlled entities 605,836 753,712 Total audit and review of financial reports 605,836 753,712 Other assurance services 558,866 380,557 Tax compliance services 187 ,513 201,211 Total other non-audit services 746,379 581,768 Total services provided by GT 1,352,215 1,335,480 74 | Acrow Annual Report 2025
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29 . Key management personnel and related parties Key management personnel are those persons having authority and responsibility of planning, directing and controlling the activities of the Group, directly or indirectly, including any director, whether executive or otherwise, of the Group. In dollars 2025 2024 Key management personnel compensation for the period: ● Short term employment benefits 1,680,461 1,688,302 ● Long term employment benefits 115,318 126,687 ● Post-employment benefits 59 ,864 54,798 ● Share-based payments 169 ,528 772,063 Total compensation paid to key management personnel 2,025,171 2,641,850 Other related party transactions Directors and KMP of the company hold directorship in other entities. These entities have transacted with Acrow in the financial year on terms and conditions no more favourable than those are at an arms-length basis. All intercompany transactions between the parent entity and the subsidiaries and amongst the subsidiaries have been eliminated on consolidation. 30. Financial risk management Risk management objectives and policies The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks, and aging analysis for credit risk. Fair value hierarchy The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. Fair value inputs are summarised as follows: Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted market prices at the end of the reporting period. Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. As of 30 June 2025, the Group had an outstanding forward contract with a mark-to-market value of USD $1,941,000/AUD $3,082,910 recorded (2024: nil), maturing on 25 July 2025. The effective portion of changes in the fair value of forward contracts is measured at fair value through profit or loss. The fair value is determined using quoted forward exchange rates at the reporting date and present value calculations based on a yield curve sourced from available market data quoted for the respective currencies, accordingly it is level 2 in the fair value hierarchy. For the year ended 30 June 2025, the Group recognised an unrealised loss of $119 ,551 (2024: nil) in other expenses under Note 6. Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. Acrow Annual Report 2025 | 75
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 The fair value of financial liabilities for the year ended 30 June 2025 are as follows: 2025 2024 Contingent consideration payable Balance at the beginning of the period 6,092,350 – Net loss on contingent consideration in the profit or loss 2,972,108 – Additions to contingent consideration for acquisitions of subsidiaries during the year 5,520,711 6,092,350 Cash paid for settlement of contingent cash consideration (5,409 ,964) – Closing contingent cash consideration payable 9 ,175,205 6,092,350 The Group has recognised contingent consideration in relation to business combination. The contingent consideration is measured at fair value using Level 3 inputs, based on management’s estimates of future performance and discount rates. Changes in fair value are recognised in the profit or loss. Fair value hierarchy is re-assessed annually for any change in circumstance that may suggest a revised level be assigned to a type of balance measured at fair value. The Group’s risk management is coordinated by management, in close cooperation with the Board of Directors, and focuses on actively securing the Group’s short to medium-term cash flows by minimising the exposure to financial markets. The Group does not actively engage in the trading of financial assets for speculative purposes. The most significant financial risks to which the Group is exposed are described below. Market risk analysis The Group is exposed to market risk through its use of financial instruments and specifically to interest rate risk and certain other price risks, which result from its operating activities. Exposure to currency risk As at 30 June 2025 the Group held the below AUD equivalent of foreign currency risks in USD, EUR and HKD: 30 June 2025 30 June 2024 USD EUR HKD USD EUR HKD Trade payables 8,749 ,561 80,151 (753) 5,406,605 391,655 20,977 Purchase orders at 30 June 9 ,889 ,440 561,773 831,193 8,591,008 1,152,708 657 ,180 Forward exchange contracts (3,082,910) – – – – – Net exposure 15,556,091 641,924 830,440 13,997 ,613 1,544,363 678,157 Foreign currency sensitivity A possible strengthening/(weakening) of the USD, EUR or the HKD at 30 June would have affected profit or loss by the amounts (in AUD) shown below. This analysis assumes that all other variables remain constant and ignores the impact of forecast purchases. Profit or loss In dollars Strengthening Weakening USD (10% movement) 1,718,318 (2,100,166) EUR (10% movement) 75,495 (92,271) HKD (10% movement) 58,441 (71,427) 30. Financial risk management (continued) 76 | Acrow Annual Report 2025
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Interest rate risk Interest rate risk is the risk that changes in interest rates impact the Group’s financial performance or the value of its financial instruments. The Group’s interest rate risk arises from its overdrafts, term loans and when new equipment or trade finances are drawn. Draw down and increase in overdraft under the current debt facility are priced using a floating interest rate plus a fixed margin. The Group does not currently use interest rate hedges. However, management regularly reviews its funding arrangements to ensure loans are competitively priced and access are maintained to necessary liquidity levels to service the Group’s operational activities. At 30 June 2025 the Group has the following exposure to interest rates on borrowings: 2025 2024 Fixed rate instruments Loans and borrowings 35,315,403 25,866,402 Deferred consideration on business acquisitions 509 ,863 526,433 Variable rate instruments Loans and borrowings 73,727 ,842 44,767 ,000 Overdraft 22,180,492 3,597 ,901 Interest Rate Sensitivity At 30 June 2025, the Group held interest bearing loans of $109 ,043,245 (2024: $70,633,402) and a bank overdraft of $22,180,492 (2024: $3,597 ,901). An increase of 100 basis points in interest rates on variable instruments at the reporting date would have a negative impact of $661,215 (2024: $393,621) on the net profit, whereas a decrease of 100 basis points would have a positive impact of $668,818 (2024: $388,728) on the net profit. Credit risk analysis Credit risk is the risk that a counterparty fails to discharge an obligation to the Group. The Group is exposed to this risk principally through receivables from customers. The Group leases hire equipment and provide services to consumers pursuant to policies and procedures that are intended to ensure that there is no concentration of credit risk with any individual, company or other entity. The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors such as market segment, financial profile, default risk of the industry sector and credit history of the customers. To manage this risk, the Group has a policy for establishing credit approvals and limits under which each new customer is analysed individually for creditworthiness before standard payment terms and limits are granted. Where available at reasonable cost, external credit ratings and/or reports on customers and other counterparties are obtained and used. The Group’s policy is to deal only with creditworthy counterparties. The summary of the Group’s trade receivables is available in note 11. The Group conducts an ongoing assessment of expected credit losses (ECL) by analysing actual loss experience of the Group, arrears, and other inputs such as exposure or timing. The assessment is broken down into 4 sectors including Industrial Services, Civil Infrastructure, Commercial, and Residential. These sectors are then analysed in a set of 5 stages ranging from currently due receivables to receivables due in over 90 days. The Group also separately quantifies receivables due from entities in liquidation/default. Macroeconomic Scenarios Expected credit losses (“ECL”) are a probability-weighted estimate of credit losses over the expected life of the financial instrument. The Group has a process for incorporating forward looking economic scenarios and determining the probability weightings assigned to each scenario in determining the overall ECL. The Group prepares a base, best and worst-case scenario analysis based on economic variables. The Group has incorporated this by use of a management overlay or economic risk reserve. Write-off policy The Group writes off financial assets in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include (i) ceasing enforcement activity and (ii) where the Group’s recovery method is foreclosing on collateral and the value of the collateral such that there is no reasonable expectation of full recovery. Acrow Annual Report 2025 | 77
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 Liquidity risk analysis Liquidity risk is the risk that the Group might be unable to meet its obligations. The Group manages its liquidity needs by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, on a day-to-day and week-to-week basis, as well as on a rolling 30-day projection. Long-term liquidity needs for a 180-day and a 360-day lookout period are identified monthly. Net cash requirements are compared to available borrowing facilities to determine headroom or any shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over the lookout period. Refer to note 19 for undrawn borrowing facilities. The Group’s objective is to maintain cash to meet its liquidity requirements for 30-day periods at a minimum. Funding for long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities. The Group considers expected cash flows from financial assets in assessing and managing liquidity risk, notably its cash resources and trade receivables. The following liquidity risk disclosures reflect all contractually fixed repayments and interest resulting from recognised financial liabilities and derivatives as of 30 June 2024. The timing of cash flows for liabilities is based on the contractual terms of the underlying contract. Contractual cash flow Carrying Amount Total 1 year or less 1 to 5 years Over 5 years 2025 Non-derivative financial liabilities Contingent considerations 9 ,175,205 (11,669 ,692) (8,669 ,692) (3,000,000) – Deferred considerations 1,807 ,863 (1,848,000) (1,681,333) (166,667) – Trade payables and accrued expenses 27 ,133,102 (27 ,133,102) (27 ,133,102) – – Loans and borrowings 109 ,043,245 (123,577 ,992) (25,799 ,991) (97 ,778,001) – Lease liabilities 40,556,031 (43,920,597) (9 ,484,245) (28,092,471) (6,343,881) 187 ,715,446 (208,149 ,383) (72,768,363) (129 ,037 ,139) (6,343,881) 2024 Non-derivative financial liabilities Deferred considerations 5,718,783 (5,887 ,252) (1,689 ,560) (4,197 ,692) – Trade payables and accrued expenses 21,535,436 (21,535,436) (21,535,436) – – Loans and borrowings 70,633,402 (79 ,179 ,408) (26,023,208) (53,156,200) – Lease liabilities 32,461,961 (38,885,252) (7 ,280,278) (22,016,578) (9 ,588,396) 130,349 ,582 (145,487 ,348) (56,528,482) (79 ,370,470) (9 ,588,396) 30. Financial risk management (continued) 78 | Acrow Annual Report 2025
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31. Group entities The below subsidiaries have been granted relief from the necessity to prepare financial reports under the option available to the Group under ASIC Corporations (wholly owned) Instrument 2016/785. These subsidiaries, along with Acrow Limited (the parent entity of the Group), form the Deed of Cross Guarantee Group. The preliminary consolidated financial statements include the financial statements of the following wholly owned subsidiaries: Place of incorporation % Equity interest Acrow Holdings Pty Limited NSW 100% Acrow Formwork and Scaffolding Pty Ltd NSW 100% Acrow Screens Pty Ltd NSW 100% Acrow Screens (QLD) Pty Ltd QLD 100% Acrow Industrial Group Pty Ltd QLD 100% Uni-span Height Safety Pty Ltd QLD 100% Unispan Australia Pty Ltd QLD 100% Uni-span Formwork Solutions Pty Ltd QLD 100% MI Scaffold Pty Ltd QLD 100% Benchmark Scaffolding & Edge Protection Pty Ltd QLD 100% Acrow Group Investments Pty Ltd NSW 100% Australasian Training & Education Centre Pty Ltd QLD 100% Above Scaffolding Pty Ltd NSW 100% Above Scaffolding Services Pty Ltd NSW 100% Acrow Energy and Infrastructure Services Australia Pty Ltd (i) NSW 100% Acrow Energy and Infrastructure Services Australia (Gladstone) Pty Ltd (i) QLD 100% (i) Names of these subsidiaries have been changed in FY2025 pursuant to the share purchase agreements, with no changes to Australian Business Numbers: ● Acrow Energy and Infrastructure Services Australia Pty Ltd (formerly known as “Brand Energy and Infrastructure Services Australia Pty Ltd”) ● Acrow Energy and Infrastructure Services Australia (Gladstone) Pty Ltd (formerly known as “Brand Energy and Infrastructure Services Australia (Gladstone) Pty Ltd”) 32. Deed of cross guarantee Acrow Limited, Acrow Holdings Pty Limited, Acrow Formwork and Scaffolding Pty Ltd, Acrow Screens Pty Ltd, Acrow Screens (QLD) Pty Ltd, Acrow Industrial Group Pty Ltd, Uni-span Height Safety Pty Ltd, Unispan Australia Pty Ltd, Uni-span Formwork Solutions Pty Ltd, MI Scaffold Pty Ltd, Benchmark Scaffolding & Edge Protection Pty Ltd and Acrow Group Investments Pty Ltd are parties to a deed of cross guarantee (‘the Deed’) under which each company guarantees the debts of the others. By entering into the Deed, the wholly owned entities have been relieved from the requirement to prepare a financial report and Directors’ Report under ASIC Corporations (Wholly Owned Companies) Instrument 2016/785. In FY2025, newly acquired Australasian Training & Education Centre Pty Ltd, Above Scaffolding Pty Ltd, Above Scaffolding Services Pty Ltd, Acrow Energy and Infrastructure Services Australia Pty Ltd and Acrow Energy and Infrastructure Services Australia (Gladstone) Pty Ltd have been entered into the deed. The above companies represent a ‘closed group’ for the purpose of the Class Order, and as there are no other parties to the Deed that are controlled by Acrow Limited, they also represent the ‘extended closed group’. Acrow Annual Report 2025 | 79
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Notes to the Consolidated Financial Statements (continued) For the year ended 30 June 2025 33. Parent entity disclosures 2025 2024 Results of the parent entity Profit for the period 13,306,800 11,264,631 Total comprehensive income for the period 13,306,800 11,264,631 Financial position of the parent entity at year end Current assets 43,303 30,174 Non-current assets 87 ,716,340 84,714,269 Total assets 87 ,759 ,643 84,744,443 Current liabilities 11,023,953 6,168,956 Total liabilities 11,023,953 6,168,956 Net assets 76,735,690 78,575,487 Equity 76,735,690 78,575,487 Accounting policies of the parent company Acrow Limited are consistent with the group and subsidiaries. Investments in subsidiaries are accounted for at cost in the financial statements of the parent entity, these are reviewed annually for recoverability at the reporting date. 34. Operating segments The Group’s operating segment is based on the internal reports that are reviewed and used by the Board of Directors and the executive management team (being the Chief Operating Decision Makers (“CODM”)) in assessing the financial performance and in determining the allocation of resources. The Group operates in the building construction market, providing falsework, formwork, scaffolding, screens and related material for hire and sales. There are no operating segments for which discrete financial information exists. The information reported to the CODM, on at least monthly basis, is the consolidated results as shown in the statement of profit or loss and other comprehensive income and statement of financial position. 35. Subsequent events On 25 August 2025 the Directors declared a 100% franked dividend of 2.95 cents per share to be paid on 28 November 2025. Dividend Reinvestment Plan is available for election. The dividend has not been provided for in this financial report as it was not declared until after 30 June 2025. Other than the above events, there has not otherwise arisen between 30 June 2025 and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Group, to affect significantly the operations of the Group, the results of those operations, or the state of the affairs of the Group in future financial years. 80 | Acrow Annual Report 2025
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Consolidated Entity Disclosure Statement As at 30 June 2025 Name of entity Type of entity Trustee, partner or participant in JV % of share capital Place of business/ country of incorporation Australian resident or foreign resident Foreign jurisdiction of foreign residents Parent entity Acrow Limited Body corporate - 100% Australia Australia n/a Subsidiaries Acrow Holdings Pty Limited Body corporate - 100% Australia Australia n/a Acrow Formwork and Scaffolding Pty Ltd Body corporate - 100% Australia Australia n/a Acrow Screens Pty Ltd Body corporate - 100% Australia Australia n/a Acrow Screens (QLD) Pty Ltd Body corporate - 100% Australia Australia n/a Acrow Industrial Group Pty Ltd Body corporate - 100% Australia Australia n/a Uni-Span Height Safety Pty Ltd Body corporate - 100% Australia Australia n/a Unispan Australia Pty Ltd Body corporate - 100% Australia Australia n/a Uni-span Formwork Solutions Pty Ltd Body corporate - 100% Australia Australia n/a MI Scaffold Pty Ltd Body corporate - 100% Australia Australia n/a Benchmark Scaffolding & Edge Protection Pty Ltd Body corporate - 100% Australia Australia n/a Acrow Group Investments Pty Ltd Body corporate - 100% Australia Australia n/a Australasian Training & Education Centre Pty Ltd Body corporate - 100% Australia Australia n/a Above Scaffolding Pty Ltd Body corporate - 100% Australia Australia n/a Above Scaffolding Services Pty Ltd Body corporate - 100% Australia Australia n/a Acrow Energy and Infrastructure Services Australia Pty Ltd Body corporate - 100% Australia Australia n/a Acrow Energy and Infrastructure Services Australia (Gladstone) Pty Ltd Body corporate - 100% Australia Australia n/a Basis of preparation This consolidated entity disclosure statement (CEDS) has been prepared in accordance with the Corporations Act 2001 and includes information for each entity that was part of the consolidated entity as at the end of the financial year in accordance with AASB 10 Consolidated Financial Statements. Acrow Annual Report 2025 | 81
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Directors’ Declaration For the year ended 30 June 2025 The Directors of Acrow Limited (the Group) declare that: (a) With regard to the consolidated entity disclosure statement (on page 81), the statement is true and correct and complies with the requirements of Section 295 of the Corporations Act 2001. (b) The consolidated financial statements and notes set out on pages 44 to 80 and the Remuneration Report in the Directors’ Report, set out on pages 23 to43 are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Group’s financial position as at 30 June 2025 and of its performance, for the financial year ended on that date; and (ii) complying with Australian Accounting Standards, International Financial Report Standards and the Corporations Regulations 2001; (c) There are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. (d) There are reasonable grounds to believe that Acrow Limited and its controlled entities identified in note 30 will be able to meet any obligations or liabilities to which they are or may become subject by virtue of the Deed of Cross Guarantee between Acrow Limited and its controlled entities pursuant to ASIC Corporations (Wholly Owned Companies) Instrument 2016/785. (e) The Directors have been given the declarations required by section 295A of the Corporations Act 2001 from the Chief Executive Officer and the Chief Financial Officer for the financial year ended 30 June 2025. Signed in accordance with a resolution of the Directors: Peter Lancken Steven Boland Chairman Director, Chief Executive Officer Sydney, 29 September 2025 Sydney, 29 September 2025 82 | Acrow Annual Report 2025
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Grant Thornton Audit Pty Ltd Level 26 Grosvenor Place 225 George Street Sydney NSW 2000 Locked Bag Q800 Queen Victoria Building NSW 1230 T +61 2 8297 2400 #14480122v5 grantthornton.com.au ACN-130 913 594 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the Members of Acrow Limited Report on the audit of the financial report Opinion We have audited the financial report of Acrow Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2025, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information, the consolidated entity disclosure statement and the directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: a giving a true and fair view of the Group’s financial position as at 30 June 2025 and of its performance for the year ended on that date; and b complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independent Auditor’s Report For the year ended 30 June 2025 Acrow Annual Report 2025 | 83
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#14480122v5 Grant Thornton Audit Pty Ltd Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matter How our audit addressed the key audit matter Recoverable amount of goodwill (Note 16) As at 30 June 2025, the Group has goodwill of $31.2m. In accordance with AASB 136 Impairment of Assets, the Group is required to test the carrying value of goodwill annually unless impairment indicators are present earlier. Management has tested goodwill for impairment by comparing the carrying value of the assets related to this cash-generating unit (CGU) to their recoverable amounts. The recoverable amounts were determined using a valuation model based on the value in use of these assets. We have determined this is a key audit matter as this assessment requires the exercise of significant judgement about forecasting future revenues and expenses, including discount rates applied to cash flows. Our procedures included, amongst others: • Enquiring with management to obtain and document an understanding of the processes and controls related to the assessment of impairment, including the calculation of the recoverable amount and the determination of CGUs; • Obtaining management’s value-in-use calculations and performed the following procedures: − Testing the mathematical accuracy of the model; − Evaluating management’s ability to perform accurate estimates by comparing historical forecasting to actual results; − Testing the reasonableness of forecast cash inflows and outflows derived by the CGU’s assets; and − Assessing the discount rates applied to forecast future cash flows; • Evaluating the value in use model against the requirements of AASB 136, including consultation with our internal valuation experts to determine the appropriateness of the value in use model and the discount rate calculated by management; • Performing sensitivity analysis on the significant inputs and assumptions made by management in preparing the calculation; and • Assessing the appropriateness of the disclosures included in the financial report. Business Combinations (Note 9) The Group acquired 100% of the ordinary shares of Above Scaffolding Pty Ltd and Above Scaffolding Service Pty Ltd on 30 April 2025, for a total consideration of $17.1m which includes contingent consideration of $4.8m. In addition, The Group acquired 100% of the ordinary shares of Brand Energy and Infrastructure Services (Australia) Pty Ltd and Brand Energy and Infrastructure Services (Gladstone) Pty Ltd on 1 May 2025, for a total consideration of $13.4m. These transactions have been accounted for in accordance with AASB 3 Business Combinations. This is a key audit matter as it is complex and includes a high degree of estimation uncertainty and judgment when determining fair value of acquired assets and liabilities. Our procedures included, amongst others: • Obtaining the purchase agreements, and bank statements to confirm the terms of the contracts and agreeing payments to the bank statement; • Obtaining the acquisition balance sheets of the acquired entities and agreeing material balances to supporting information; • Evaluating the forecasts provided by management upon which the valuations were based by assessing forecast revenues and operating costs based on our knowledge of the market and sector trends; • Engaging with our valuation specialists to evaluate the Independent Expert’s Valuation Report, including: Independent Auditor’s Report (continued) For the year ended 30 June 2025 84 | Acrow Annual Report 2025
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#14480122v5 Grant Thornton Audit Pty Ltd Key audit matter How our audit addressed the key audit matter - assessing whether the appropriate intangible assets had been identified; - assessing the appropriateness of the valuation methodologies; and - challenging the assumptions used were reasonable and supportable. • Assessing the competence, capabilities and objectivity of the independent experts engaged by management to perform their valuation; • Assessing, challenging and applying professional scepticism to management’s assessment of contingent consideration and the underlying calculations of these liabilities; • Assessing the reasonableness of the useful lives of the acquired assets; and • Assessing the appropriateness of the accounting treatment of the acquisitions in line with AASB 3 and evaluating the appropriateness of the disclosure of the acquisition in the Group financial statements. Information other than the financial report and auditor’s report thereon The Directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2025, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the financial report The Directors of the Company are responsible for the preparation of: a) the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 (other than the consolidated entity disclosure statement); and b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001, and for such internal control as the directors determine is necessary to enable the preparation of: i) the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Acrow Annual Report 2025 | 85
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#14480122v5 Grant Thornton Audit Pty Ltd Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/media/bwvjcgre/ar1_2024.pdf. This description forms part of our auditor’s report. Report on the remuneration report Responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Grant Thornton Audit Pty Ltd Chartered Accountants S M Thomas Partner – Audit & Assurance Sydney, 29 September 2025 Opinion on the remuneration report We have audited the Remuneration Report included in pages 23 to 43 of the Directors’ report for the year ended 30 June 2025. In our opinion, the Remuneration Report of Acrow Limited, for the year ended 30 June 2025 complies with section 300A of the Corporations Act 2001. Independent Auditor’s Report (continued) For the year ended 30 June 2025 86 | Acrow Annual Report 2025
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Shareholder Information For the year ended 30 June 2025 The additional information set out below, in accordance with ASX Listing Rule 4.10, was applicable as at 22 September 2025. Substantial Holders1 Name Shares % Perennial Value Asset Management 26,251,524 8.55 1 As disclosed in the most recent substantial holder notices given to the Company under the Corporations Act. Distribution of equity securities Fully Paid Ordinary Shares Unlisted Performance Rights No. of holders % of securities No. of holders % of securities 1 to 1,000 1,941 0.14% – – 1,001 to 5,000 1,133 1.11% – – 5,001 to 10,000 820 2.20% – – 10,001 to 100,000 2,236 24.12% 10 6.59% 100,001 and over 376 72.44% 27 93.41% Total no. of holders 6,506 37 No. of holders holding less than a marketable parcel 1,469 – Total no. of securities 309 ,408,251 11,942,843 Voting rights On a show of hands each member present in person or by proxy shall have one vote and upon a poll each share shall have one vote. No voting rights Acrow Annual Report 2025 | 87
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Shareholder Information (continued) For the year ended 30 June 2025 Top Holders 20 Largest Holders of Fully Paid Ordinary Shares Position Holder Name No. of securities held % of total securities held 1 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 28,070,698 9.0 7 % 2 CITICORP NOMINEES PTY LIMITED 20,670,843 6.68% 3 NETWEALTH INVESTMENTS LIMITED <WRAP SERVICES A/C> 13,154,806 4,25% 4 KENECO PROPERTY PTY LTD <FAMIGLIA A LTD PARTNER A/C> 13,086,667 4.23% 5 MARGARET ANNA PROKOP 7 ,126,209 2.30% 6 MRP PROPERTY PTY LTD <MRP GROUP FAMILY A/C> 5,376,043 1.74% 7 CONCHORD PTY LTD <NEO CAMELOT NO 2 A/C> 3,853,044 1.25% 8 MALCOLM & JUNE ROSS INVESTMENTS PTY LTD 3,209 ,129 1.04% 9 11 BELGRAVIA PTY LTD <A & S SUPER FUND A/C> 3,095,897 1.00% 10 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 3,095,890 1.00% 11 MR ANDREW HAROLD KENNARD & MRS PRUDENCE ALICE KENNARD <KENNARD FAMILY SUPER FUND> 3,039 ,474 0.98% 12 BOND STREET CUSTODIANS LIMITED <SALTER – D79836 A/C> 3,000,000 0.97% 13 JOSAMBA PTY LTD <WR&P GIBSON SUPER FUND A/C> 2,640,000 0.85% 14 DRACKA PTY LTD <THE DRACKA A/C> 2,464,430 0.80% 15 MARYVILLE PTY LTD <BOLAND FAMILY A/C> 2,366,165 0.76% 16 TOBAKA SUPERANNUATION PTY LTD <TOBAKA P/L EMPLOYEES SF A/C> 2,357 ,973 0.76% 17 WHOOSHKA NOMINEES PTY LTD <WALLY WHOOSHKA A/C> 2,184,976 0.71% 18 BNP PARIBAS NOMINEES PTY LTD <HUB24 CUSTODIAL SERV LTD> 2,174,638 0.69% 19 BRUNDEE INVESTMENTS PTY LTD <KIRRA FAMILY A/C> 1,800,193 0.58% 20 MR MATTHEW ROBERT CAPORELLA 1,737 ,809 0.56% Total 124,504,884 40.24% Total Issued Capital 309 ,408,251 100.00% There are no holders of more than 20% of any of the classes of unquoted securities. Restricted Securities or securities subject voluntary escrow There are no restricted securities or securities subject to voluntary escrow. Other Information The Company’s securities are not quoted on any other stock exchange. The Company is not currently conducting an on-market buy-back. The Company has not sought approval to issue any securities for the purposes of item 7 of section 611 of the Corporations Act 2001 (Cth). The Company has not purchased any securities on-market under or for the purposes of an employee incentive scheme, or to satisfy the entitlements of the holders of options or other rights to acquire securities granted under an employee incentive scheme. 88 | Acrow Annual Report 2025
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Corporate Directory For the year ended 30 June 2025 COMPANY Acrow Limited BOARD OF DIRECTORS Mr Peter Lancken AM | Non-Executive Chairman Mr Steven Boland | Executive Director Ms Laurie Lefcourt | Non-Executive Director (Chair of the Audit and Risk Committee) Mr David Moffat | Non-Executive Director Mr James Scott | Non-Executive Director Mr Rod Heale | Non-Executive Director CHIEF FINANCIAL OFFICER Mr Andrew Crowther COMPANY SECRETARY Mr Lee Tamplin REGISTERED OFFICE 2A Mavis Street, Revesby NSW 2212 Phone: 02 9780 6500 SHARE REGISTRY Automic Group Level 5, 126 Phillip Street Sydney NSW 2000 Phone: 1300 288 664 AUDITOR Grant Thornton Audit Pty Ltd Level 26, Grosvenor Place, 225 George Street Sydney NSW Australia 2000 ASX CODE ACF ACN 124 893 465 Acrow Annual Report 2025 | 89 Back cover: Scaffolding inside Flare - SENEX Atlas East, Queensland
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