As I mentioned earlier, the rate of employment in Sedgman has declined rapidly since 2010 with almost 1000 employees globally.  In 2012 they rose to over 1030 employees globally, with 838 in Australia alone.  But it was in October 2012 when rumours began to surface of cost cuts and a confidential email was sent to workers encouraging them to apply for voluntary redundancy, noting the companies intention to reduce costs and improve efficiency.  http://www.miningaustralia.com.au/news/sedgman-emails-staff-asking-for-voluntary-redundan
The company had been seeing a revenue increase of 17.2% to $650.5 million as of August 2012, and the Managing Director Nick Jukes commented saying that they were very pleased with the growth, but they were anticipating a softening in commodity prices and high Australian dollar therefore affecting their future growth.

In the 2013 financial statement, the effects of the economy have had a significant affect on revenues and profits.  Combined revenue (Of projects and Operations across the globe) was down 33.1% from $650.8million to $435.5 Million.  NPAT down 75.1% from $37.8 million to $9.4 million.  The staff headcount was at 788, lower than it was in 2010, a decrease of 23.5% since June 2012.  This is even less than the total of JUST Australia in 2012 of 838.  Now there are only 788 global, supposedly due to the slowdown in the resources sector.

Sedgman claims that the reduced revenue is due to the large asset write down of 4.5 million dollars and redundancy costs of 2.1 million.  

It is worth mentioning that as cash is the real linchpin in organisations, the company reported net cash of 75 million net cash.  Looking at the consolidated balance sheet, there is an increase in cash however small of $10,034.00.  The company still seems to be bringing in sufficient amounts of cash.

Another point that came to my attention was the large difference in profit for the year ended 30 June 2013 and 30 June 2012 in the Consolidated statement of comprehensive income.  A difference of $28,420 since 2012 is a substantial difference.

My key concepts and questions are a little jumbled, and I apologise for that.  I don't seem to be thinking in a straight line with this assignment, rather I jump back and forth between statements, years and facts.

But bear with me :)

My financial reports like many of the others are VERY LONG!!!!.  Took a very long time to really get to the end of them all.  There is a lot of filler in them, really puffing up the image of the business, it is clear as in the reading that these reports are created for the eyes of the investors, creditors, debtors and the community.

I felt that when reading the first two financial reports including the years for 2010, 2011  and 2012; I was very enthusiastic about the company.  I thought 'Hmm, this is a good looking portfolio.  If I wasn't a poor college student, I might invest here."  In 2011 an increase in revenue of 65% to 555 Million.  Net profit after tax NPAT increased 4.2% to 26 Million.  Order books increased, employment increased, new projects and operations left, right and centre.  And this was with a reported slow down and intermittent closing of operations due to the bad weather from cyclone Yasi.  According to the ASX (1), Share prices at the beginning of 2011 were at 2.150 and fell to 1.900 at the years end.  But early in 2012 rose to a staggering 2.450, the highest since 2008.  But it was then that the company made a turn for the worst.  I am glad that I didn't invest the .50cents that I have to my name in this company upon further investigation.

I looked into the current market for Sedgman Limited and how the great have fallen, and risen again and fallen, and then rose giving a little hope before plummeting again in a pattern that they seem to know all too well.


After February in 2012, the share price plummeted to 1.4 and continued to fluctuate but ultimately decrease to a low of .450, the lowest in ten years. In just a little under 2 years, the shares went from over 3.550 to 0.450.  This seems to be a common pattern for Sedgman, and a skilled investor may be able to gain from their fluctuations and use the patterns to their advantage.  But not this novice, no.

This experience has definitely confirmed the idea that we must look at the scope of an organisation over a number of years, for the long term and not just through a narrow view at a few years time.



1  (http://hfgapps.hubb.com/asxtools/Charts.aspx?asxCode=SDM&compare=comp_index&indicies=0&pma1=0&pma2=0&volumeInd=9&vma=0&TimeFrame=M4)

My top three favourite blogs:

I have been sneaking at other people's blogs in this course and I am absolutely astounded with the work that people have done.  I have been trying to get ahead in my reading and I regret to say that I have neglected my blog a bit.  I feel like when I am writing it, it is so informal and unscripted that I am concerned I am doing it all wrong.  But these top three blogs that I have chosen have given me a bit more confidence to continue with my own blog about Sedgman Limited.

1.  http://annatowanacct11059.blogspot.com.au/

Anna's blog really helped me to understand how to do my own blog a bit more.  I am completely new to blogging and even just following the simple steps in the assignment, I was concerned that I wasn't doing the correct thing.  But this blog is set up so beautifully with so much information and personal flare, it is very easy and enjoyable to read.

2. http://heather-acct11059.blogspot.com.au/

Heather's blog is also excellent, it is set up beautifully and I can immediately see what her company is, the fantastic timeline (an excellent idea) and the comparison between the ASX and NYSE.  A very good blog and also helped me a lot to understand this daunting process

3. http://dheepaapps.blogspot.com.au/

Dheepa's blog is great to read as it is a company that I am sure we are all quite familiar with.  The blog has tables and nice formatting so that it is easy to read and not just a huge jumble of words that fend the reader away.  

Well done.  Fantastic work!!!

A little more information

Sedgman Limited has over 50% market share of coal handling and preparation plant projects in Australia.  They continue to earn millions in new contracts, a large part thanks to their partnership with Theiss Sedgman Joint Venture.  They entered into the joint venture with Theiss in 2002, a 50% partnership, a commercial delivery service for engineering services in Australia.
The Sedgman corporate structure is truly an international one, in 2011 with 988 employees worldwide, 2012 with 1030 worldwide and in 2013 due to cutting costs the reports downplayed the number of employees that were lost when they dropped to approximately 800 employees worldwide.  Less than the 838 staff employed in Australia alone in 2012.
With four key regions across the globe, this downsizing would have been very detrimental to the staff overseas and at home.
Operations and projects in the Americas, Africa, Asia and Australia.

I am new to blogging and find it a weird and wonderful process, so bare with me in my writing.  I have been assigned the company Sedgman Limited, a leading provider of mineral processing and associated infrastructure worldwide.  In other, more simple words.  They deal in mining and rocks.  The company has many subdivisions and sectors as well as an operations sector and a projects sector.  

They continue to develop and open new multi-million dollar contracts and give what I see to be a reasonably fair view of their financial and strategic standing with a view of BOTH the positives and negatives that have been inflicted on the company over the three years that I have been studying.  

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Welcome to Accounting With Jess!
My name is Jessica, I am a current second year student with Central Queensland University.  I am doing a dual degree in Business and Accounting and I hope to one day open my own restaurant.