Memo to all Staff – Clough Limited UpdateAs you all know we are...

Memo to all Staff – Clough Limited Update


As you all know we are working hard to bounce back from a number of very difficult projects. We are taking these problems as an opportunity to lift our performance, to become more commercial in our project management and to introduce more rigour in the use of our systems and procedures. Our new structure is now bedded in well and we are making real progress on making sure we learn from past mistakes.

But there are annoying and ill informed rumours in the business community about our financial health, our competence and the likelihood of a takeover by another company. We are being kicked while we are down.

Here are the facts. I ask that if you hear any gossip then react positively and let people know what is really happening in the company.

Clough is NOT in financial difficulty. The problem projects will impact our first half results and the market has been informed of this. Despite that, our cash reserves are healthy and our balance sheet has never been stronger. As well, our order book is at record levels and we have never been busier.

Clough is NOT under-performing. Our problem projects are technically largely behind us and we have learnt a lot. We have a number of commercial issues to resolve which can only improve our reported results. Its never easy, but our current major projects are going well and, of course, we are watching them very closely. Clough remains a major international construction contractor with cutting edge engineering skills. Since listing, we have been consistently profitable and have paid consistent substantial dividends. We are the leading Australian contractor in the oil and gas business, both onshore and offshore. With all that we have the best safety record in the Australian construction industry. The Sawan project recently completed 5 million manhours injury free! – a fantastic effort that our competitors can only dream of. The Clough systems and procedures are always being improved, but there is no doubt that when they are properly applied they are second to none.

Clough is NOT being taken over by Leightons, or by any other company. We are always talking to other companies about working with them in order to grow our business but the company is not for sale.

The drive to improve our performance and grow the company has never been stronger. We are all part of a great company, with a huge depth of talent and a raft of opportunities. Don’t let the knockers talk us down. Our results will prove them wrong in the end, but in the meantime, let them know we are fighting back.

I plan to get out and talk about this with as many of you as possible over the coming weeks, either before our March 5 results release or soon after.



Brian Hewitt
CEO & Managing Director – Clough Limited
12/2/03