Good morning, everyone. My name is Martin Brydon. I am the Non-Executive Chair of your company and the chair of this meeting. It is now 11:00 A.M. Australian Western Standard Time. But before I call this annual general meeting of Duratec Limited to order, I would like to take a moment to reflect on the recent sudden passing of our fellow board member, Krista Bates. Krista Bates served on Duratec's board of directors since 1 July 2023, contributing significantly to the company's strategic direction and governance. Krista Bates was a member of the audit and risk and remuneration and nominations committees, as well as chair of the sustainability committee, where she played an essential role in ensuring the company's long-term growth and stability. We are deeply saddened by Krista Bates's passing.
She was a respected and admired member of our board, bringing significant business experience and insights that were greatly valued by the board and the management. Our thoughts and condolences are with her family and friends during this difficult time. I now call this annual general meeting of Duratec Limited to order. Today's meeting is being held in a virtual format, allowing all shareholders to participate via the Computershare online meeting platform. On behalf of the board, I would like to welcome all participants to this annual general meeting. It's fourth as an ASX-listed company. I would like to begin today by acknowledging the Noongar people, the traditional custodians of the land on which we gather, and pay our respects to their elders past, present, and emerging. Joining me today are my fellow directors, Chris Oates, the Managing Director, and non-executive directors, Gavin Miller and Phil Harcourt.
Phil is joining us online, and Chris and Gavin are here with us in person. We also have Dennis Wilkins, our Company Secretary, and Ashley Muirhead, the Company's Chief Financial Officer, in the room with us, as well as Ollie McKeon, our Executive Manager, Corporate Strategy and Investor Relations, who is joining us online. I would also like to welcome AJ Neo from RSM Australia Partners, the Company's auditor. AJ is joining us online this morning. Before we commence today's formal meeting proceedings, I would like to provide a brief recap of the business performance for FY24 and discuss the success of Duratec's strategic business model. Following my address, we will attend to all the items outlined in the notice of the meeting. Following the meeting's formal proceedings, our Managing Director will provide a more detailed operational update on the Company's performance in FY24 and first quarter FY25.
FY24 has been an exciting time of change and progress on the back of the record FY23 results. The company delivered a strong profit performance, with revenue ending at another historic high. FY24 full-year revenue of AUD 555.8 million represents another successful year of revenue growth for the company. Normalized EBITDA of AUD 47.6 million, a 22.6% increase year on year, was at the upper end of our guidance range with increased average margins. All business groups contributed to this positive outcome, and our strong pipeline of work and tender outlook positions the company well to continue to deliver its growth ambitions. The strong FY24 result was underpinned by our proven business strategy of having a diversified portfolio across various sectors, including defense, building and facade, mining, and industrial, energy, marine, and infrastructure. This diversity of portfolio provides greater consistency of earnings to deliver positive outcomes for our shareholders.
In FY24, our continued focus on winning projects that capitalize on our expertise, experience, and capabilities, and the deployment of our early contractor involvement approach has delivered strong project outcomes for our clients. In line with Duratec's selective approach to acquisitions that best fit the business, in FY24, we completed a number of acquisitions to boost our end-to-end capabilities. Through WPF, our wholly-owned subsidiary, we acquired AMB Welding in Darwin, increasing our geographic capability and capacity to deliver projects for the mining and industrial and energy sectors. DDR Australia, Duratec's 49% owned associate business, completed the strategic acquisition of RC Construction, expanding our capability and allowing further access to aligned procurement opportunities. We also made significant strides through investment in our in-house technologies, which have contributed to enhanced operational capabilities and efficiencies, ensuring we remain competitive and dynamic.
These include advanced 3D modeling, adopting further early contractor management practices, and technical assets such as the Novarc Technologies Spool Welding Robot. During the year, the company formalized its board's sustainability committee. The focus of the sustainability function within the business has been established in a baseline of our sustainability impacts, with Scope 1 and Scope 3 emissions as a priority. We remain committed to sustainability and ensuring that it is integrated at a pace and scale that meets the increasing expectations of our shareholders. We continue to be enthusiastic about supporting women in construction, as well as developing ongoing Aboriginal and Torres Strait Islander opportunities, and will continue to do so next year. We finished FY24 in a strong position.
The strategic review led by Chris, following his appointment as Managing Director in December 2023, resulted in an organizational restructure of the business and has ensured sustainable operations, positioning Duratec for future growth, and to deliver on our long-term vision and strategy. Our strong balance sheet was achieved through our commitment to operating a capital-light business with solid, reliable cash generation, allowing for the consistent delivery of dividends to our shareholders. The first quarter of FY25 has delivered results in line with our expectations as we continue to maintain a key focus on profit margin and follow our core belief that simply winning work to keep busy is not our objective.
Before turning to the formal part of today's proceedings, I would like to thank the board for its service during the year, all employees whose commitment and professionalism has been unwavering in a time of change and evolution, and finally, to our valued shareholders. We thank you for your support in FY24 and your continued support for our business. I will now turn to the formal part of today's proceedings. I am advised that a quorum is present, and accordingly, I officially declare the meeting open. We have received a number of valid proxy appointments for the resolutions to be considered today. The results are displayed on the screen. The total number of proxy votes and details for each item of business will be recorded in the minutes and advised to the Australian Securities Exchange.
I confirm that a total of 87,524,170 proxy votes have been received, representing 34.73% of the voting capital of the company. I also note that Rod Somes from Computershare, the company's share registry, is joining us online and has agreed to be the returning officer. Each resolution to be considered today will be decided by poll, and I inform the meeting that, as chair, I intend to vote any open available proxies I hold in favor of each resolution. Our guests are very welcome to witness the proceedings of this meeting, but I am sure you will appreciate that participation in the business of the meeting is confined to shareholders. Naturally, any comments or questions raised for discussion during the meeting must be relevant to the business before the meeting. I will conduct the formal part of the meeting by displaying each resolution on the screens.
Questions will be addressed after all resolutions have been put to the meeting. Attendees can submit questions at any time via the Q&A icon appearing at the top right of the screen. To ask a question, select the Q&A icon at the top of the screen and follow the instructions. You will get a record of this question, and it will be sent immediately for review. Please note that while you can submit questions from now on, I will not address them until the relevant time in the meeting. Attendees wishing to ask a question verbally, please follow the instructions written below the broadcast. In order to provide you with enough time to vote, I will shortly open voting for all resolutions for shareholders eligible to vote at this meeting.
So if you are eligible to vote, please select the vote icon, and the voting options will appear on your screen. Please note there is no submit or send button. Your selection is automatically recorded. To change your vote, click here to change your vote and press a different option to override. If you have any questions about casting your vote online, please refer to the online meeting guide or call Computershare on the numbers set out in the guide. I now declare voting open on all items of business. The voting tab will soon appear. Please submit your votes at any time during the meeting. Voting will remain open until I close the poll. The first matter for discussion today is consideration of the annual financial statements for the year ended 30 June 2024, together with the director's report and auditor's report in respect of those financial statements.
I now table those statements and will provide an opportunity to ask questions in respect to them and the audit in the Q&A session at the end of the meeting. So moving on to the resolutions to be considered at today's meeting. Adoption of the remuneration report. I refer you to resolution one regarding the adoption of the remuneration report. This resolution is as set out in the notice of meeting and as displayed on the screen, along with the proxy votes received on this resolution. As all questions will be asked after the last resolution, I now put the resolution to the meeting and move to the next item of business. Re-election of Mr. Robert Philip Harcourt as a director. I refer you to resolution two regarding the re-election of Mr. Robert Philip Harcourt as a director. Phil's biography is now displayed on the screen for you to read.
The board has no hesitation in recommending Phil for re-election. This resolution is set out in the notice of meeting and as displayed on the screen, along with the proxy votes received on this resolution. As all questions will be asked after the last resolution, I now put the resolution to the meeting and move to the next item of business, which is the re-election of Mr. Gavin Miller as a director. I refer you to resolution three regarding the re-election of Mr. Gavin Miller as a director. Gavin's biography is now displayed on the screen. The board has no hesitation in recommending Gavin for re-election. This resolution is also set out in the notice of meeting and as it's now displayed on the screen, along with the proxy votes received on this resolution. I now put the resolution to the meeting and move to the next item of business.
As the resolution is to consider an increase in maximum aggregate remuneration for non-executive directors, I will hand the chair to the Managing Director, Chris Oates. Over to you, Chris.
Thank you, Martin. I refer everyone to resolution four regarding the increase in maximum aggregate remuneration for non-executive directors. The board, other than the managing director, makes no recommendation to shareholders regarding this resolution. I recommend that shareholders vote in favor of this resolution. This resolution is set out in the notice of meeting and as now displayed on the screen, along with the proxy votes received on this resolution. As all questions will be asked after the last resolution, I now put the resolution to the meeting and hand the chair back to Martin.
Thank you, Chris. Now moving to the last resolution, which is the approval to grant performance rights to Executive Director, Mr. Oates.
I refer you to resolution five regarding the approval to grant performance rights to Executive Director Mr. Oates. The board, with Mr. Oates abstaining, recommends the shareholders vote in favor of this resolution. This resolution is also, as set out in the notice of meeting, as now displayed on the screen, along with the proxy votes received on this resolution. I now put this final resolution to the meeting and move to questions from shareholders. Dennis, are there any questions in respect of the annual financial statements or director's report?
Yes, Mr. Chairman, we have a couple of questions in relation to that item of business today, the first of which relates to the company's auditor, where one shareholder has noted that our auditor is also an auditor of Mineral Resources and what governance the company has put in place to ensure that this company doesn't suffer the same consequences.
And I've summarized the question. So that's the question put by one shareholder.
Okay. Well, I mean, it's absolutely imperative the company has a very reliable auditor, and a key responsibility of the board is to make sure that is the case. We do have RSM as our auditor. We are of the view, the board is of the view that they're providing a very sound service to us, and we have no concerns at all, noting what has been said about the experience at another business.
Thank you, Mr. Chairman. Another question on the financial statements, and one that goes to ask what reliance the company has on major tech companies and what would happen if they suddenly dramatically increase their prices, and would that impact our business?
I might ask you to consider that, Chris, if you would.
Yeah, no problem. Thanks for that.
I think we really don't have too much tied up with any of the major tech companies. Microsoft is obviously a platform we use, and so behind the scenes, that's probably about it. We're really a, I mean, a core we're out in the field doing things as a business maintenance, remediation, and some specialized construction. So really, at the crux of it, I don't think things like that would affect us, and certainly no more than anyone else in any other sector or region, I believe.
Thank you, Mr. Chairman. No other questions on the financial statements received.
Okay. Thanks, Dennis. Are there any questions for the auditor in respect of the auditor's report or the conduct of the audit?
None in that respect received by the platform, Mr. Chairman.
And Dennis, are there any questions on any of the resolutions before the meeting?
There are a number of questions, Mr. Chairman, so with your leave, I'll run through them in order of the resolutions that were put, if that's okay. In relation to resolution number one, which is the adoption of the remuneration report, a shareholder has asked whether or not any of the proxy advisors have given their feedback on whether the resolutions to be considered at this meeting should be supported or not. And if so, what was their response? And particularly in relation to the remuneration report, how did they recommend? That's the question.
Right. Chris, have you got?
I haven't heard anything. To be honest, nobody's contacted me directly about which way they're going to vote, not directly. And I think the voting's probably covered it off a fair bit from the percentage of what people voted for.
So I'm assuming that that's all covered off there, but nobody has contacted me directly. Yeah. Okay. Thanks.
And as Secretary, I haven't received any reports from any proxy advisors. I can't hear that. No, I'm not aware of anything there. Yeah. So if that's okay, I'll move on to the next question regarding the adoption of the remuneration report. And I've just had a request from the shareholder that I shouldn't summarize the questions or praise them. So I'll read them word for word. So in relation to the adoption of the remuneration report, a shareholder has stated our board and management team collectively sold more than 10% of their shares last year. Can you comment on your collective plans this year and beyond, buying, holding, or selling shares, and why?
Yeah. I mean, the board as such doesn't have plans for directors to be selling shares or otherwise.
What we do have in place, of course, is very strict guidelines of when shares can be traded in the appropriate periods. But certainly, we don't discuss future sale of shares, or it's up to the individual to decide as to when and if they wish to sell shares. It's worth noting that we do have some directors that hold substantial shareholding in the company. And of course, they are the founding shareholders, and it's largely why the company is where it is today. But to talk about planning for them selling shares, that's not something the board considers.
Thank you, Mr. Chairman. Final question on the adoption of the remuneration report. Shareholder states there's no disclosure around specifics on our STI measures. What is the target for NPAT and shareholder returns, for example?
Okay. We take that question on notice.
Certainly, we thought we went a long way providing transparency around the bonuses and targets for bonuses for the senior staff. Certainly, there's a lot of transparency on the LTI. In respect to STI, which sounds like that question is more aimed purely at the STI, we have hurdles in place that are set by the board, and they are set to be challenging year on year. So we don't have a standard pro forma. When we look at setting the STI for the next 12 months, we look at what will be challenging targets and targets we think that, if achieved, would be in the interest of all shareholders, and therefore, it's reasonable to pay bonuses against those. I will take it on notice as to what other information we can provide on STI going forward.
But that's really the first question I've had on that has been maybe not transparent enough.
Thank you, Mr. Chairman. That's all on the adoption of the remuneration report. So I'll move to the second resolution. Questions in relation to that? First question is in relation to the election of Mr. Harcourt. Having enjoyed the exemption on election during his 12 years as managing director, how has Robert enjoyed running the gauntlet of a shareholder election this year? And also, could both Robert and the new advise on how handover is going? The shareholder also comments that many new CEOs don't enjoy having their predecessors sitting in the boardroom critiquing their performance and protecting their own legacy. How's it going so far?
Over to you, Chris.
Good. Yeah. Obviously, for us, stability is a big part of our business and has been.
I think the results hopefully reflect us having a stable company. I've worked with Phil for 30 years, probably collectively, I think it is, or 28, 29, up in that range, and as to Dean Diprose as well. If you put that together, you can tell we know each other, we trust each other, and all the rest. We have a fully respectful relationship. It's fantastic. I don't feel burdened, and I'm sure if Phil's there, if I want him. Obviously, if you think about it, it's not just a transfer of six months. It's been a transfer of knowledge over an entire period. Yeah, it's gone really well, and we're really happy with where we're at. I think the entire company, I guess, and the senior exec team are. It's good.
Good.
Phil, can we open up the mic to Phil for Phil to comment as well? Can you hear us there, Phil?
Yeah. I'm happy to comment there and just reinforce exactly what Chris said. We've worked together successfully for 30-odd years. We know each other's strengths and weaknesses throughout. And we've worked on a handover and succession plan for really the last three years. So I have no issues whatsoever in terms of transition to Chris's management. And I think he's doing a phenomenal job. And I have absolutely nothing but admiration and support for him. Fantastic.
Thanks, Phil. Back to you, Mr. Chair. Probably I'll just move on to.
Yeah. Just move on, if you would.
Thanks. Sorry about that. So yeah, that was all on all the questions on resolution two that have come in.
There are a couple on resolution three, which is about Gavin Miller's re-election. After 14 years on the board, Mr. Miller still has only AUD 31,000 worth of shares in our company. Will he commit to lifting his holding in the company in the near future or at least one year's board fees? And if not, why should shareholders support such a long-tenured director who doesn't have adequate skin in the game?
Yeah. I'd like to address that. Well, first of all, I did speak to one of our shareholders that had a question come through, Chris, and we had a Teams meeting, not dissimilar to this. And in terms of the 14 years, I think, which is absolutely right in terms of jurisdiction, but I think it needs to be put in context.
I mean, this company today is a publicly listed company for only the last four years or so. And the company is doing really well. And one of the reasons for that is Gavin Miller's contribution to the board. So from the point of view of contribution to the board, we are very lucky to have Gavin's services. That's the first thing. In terms of shareholdings by directors, that is a fair and reasonable question. It is not unusual, and I think that's what we've been told, for directors to need to hold some shares. That is something that we will be discussing in the next little while. We have touched on it before.
But given that we will be looking to make more board appointments over the next little while for a number of reasons that are pretty apparent, then I think that is something to put into the mix when we're looking for candidates. So directors having reasonable shareholding within the company is not unreasonable, and it's something the board will look at.
Thank you. That's all in relation to that resolution. So I'll move on to resolution four. Resolution four in relation to the increase in maximum directors' fees. So one shareholder has asked, "When disclosing the outcome of voting on all resolutions today, including the proposed lifting the cap on directors' fees, could you please advise the ASX how many shareholders voted for and against each item, similar to what happens in a scheme of arrangement?" And apologize, this is quite a lengthy question.
This will provide a better gauge of retail shareholder sentiment on all resolutions and insight into the chronically low retail shareholder participation rate. It is always good to see what retail shareholders think about board pay rises. Others have already blazed the trail as this was voluntary disclosure initiated and adopted by the likes of Qantas ASX, Suncorp, Tabcorp, and our own share registry provider, Computershare, during the current AGM season. You and Computershare have the data, so why not let the sunshine in and disclose how many of our two and a half dozen shareholders voted and what they collectively thought about the resolutions? So I don't think we have any problem in disclosing the additional information, but I won't let.
There's a lot to unpack there, I think, Chris.
Yeah. I mean, if that data's available, I'm not so sure it's that secretive.
So, I think we'll take that away and look at that and see if that's possible to do that. Yeah.
Thank you. So just scrolling down to the next resolution. On the board fee pool, board composition is currently well below what is required of an ASX 300 company and above. We do not comply with many of the ASX listing principles around independence, diversity, board committees, and our board skills matrix is very poor in this shareholder's opinion. This may have been okay when we were a smaller private company, but we are on our way towards the big leagues, and we should be getting match fit now. The current gaps in our board are an avoidable risk for all stakeholders, including the current board of management.
Will the requested increase in the board fee pool be used to bring in some talented and experienced independent directors that will help all stakeholders as we grow?
Okay, well, that's precisely why we believe we need a pool, a fee pool that is appropriate for the company. Comments made there are absolutely right. This company is growing quickly, and it will continue to grow. We did make an important addition to the board, as we've discussed earlier today in 2023, which brought new skills to the board and some diversity. We now find ourselves needing to revisit that quickly, and beyond that, the board needs to be turning its mind to board renewal down the track, so to do that, we need a sufficient pool. This is not an increase to increase directors' fees per se.
But when we then look at the subcommittees, we don't pay additional fees for any directors for subcommittees. Now, as it said, this business is growing. It is going to be a sizable public company in the next little while. So we need to revisit what that means in remunerating directors for sitting on the subcommittees that will demand more and more time. That's why we think this pool increase is justified.
Thank you, Mr. Chairman. No other questions on that resolution. So I'll move to resolution five, which is the approval of granted performance rights. Could the CEO please summarize his past LTI grants as to whether they have vested or lapsed? Also, has he ever sold any ordinary shares in the company and bought any on market without relying on an incentive scheme to build his equity position in the company?
This shareholder would prefer not to just point to the annual report and to scroll through ASX announcements. It's not that complicated, and the CEO should be able to summarize the situation in less than 60 seconds.
I think I can, and I'll try and do it in 20 seconds. I have not had an LTI before offered to me. So this is the very first one. So there's no lapsing or exercising or anything. So this is it. Everyone's seen it. So I'm a founder of the company, so naturally have a fair few shares in the business and motivated, obviously, that way with that. We did a smallish share sell down. I think it was August 2023. That probably, I think, has even been referred to at this meeting. So that occurred in August.
And then we did top up some shares prior to that, probably one or two years before in my super fund that we went on market and bought. I think it was 100,000 shares at that point in time through the super fund. So that's a summary of the trading over the four years.
Thanks, Chris. Next question in relation to that is the information in the notice of meeting is very good around the LTI rights and with specific amounts and measures being used. Can we please add this to the annual report going forward rather than just in the notice of meeting?
I think we can do that.
Yeah. And I think it came after the annual report, and it's the first one. So yeah, that's a logical way to do it as well.
Okay. Indeed. Thanks.
That was all in relation to the, sorry, there is one more on that, so we've dealt with that. That's it for the questions specific to the resolutions. There are a number of general questions in relation to, there's a couple in particular that a number of shareholders have asked. So I won't read them out individually, but three shareholders have asked again why we can't have a physical meeting or a hybrid as opposed to the purely virtual format that we have. I think we've already addressed that, but if you just want to.
Yeah. I think certainly the board and management have no issues with having physical meetings per se. But in all fairness, and it may be that the company was evolving, but looking back, the attendance at physical AGM was almost zero.
Now, that doesn't necessarily mean that's the reason not to have them going forward, but it didn't seem as though they were being sought. And we just took the view that this may be more efficient and so on. We are very open to reviewing it going forward to make sure that our shareholders get access that they want.
Thank you, Mr. Chairman. And on a related topic, and it's quite a lengthy question, so I won't read it out, but I think you've answered it. One shareholder has asked to make the transcript available on the company's website together with a copy of the webcast available on the company's website as well. And we had a discussion briefly about this before the start of the meeting. And I think the consensus of the board was that, yes, we would do that. Mr.
Chairman, that deals with all of the specific questions. There are some input questions in relation to general questions, which I propose the board goes back to each shareholder and respond directly, if that's all right. I would just like to record the fact that the questions primarily came from the Australian Shareholders Association. Mr. Steven Mabb has contributed gallantly to this forum and discussion. Mr. Steven Mayne, also a shareholder in the company, has also put a few questions. And we have a number of shareholders including Mr. Bernard Kent. And there was a - sorry for scrolling. Mr. and Mrs. Ferguson also provided us with some questions. So we've had great shareholder participation. Mr. Chairman, that completes the question time.
Excellent. It is nice to get some questions so we can answer that and hopefully improve our standing with shareholders.
Thanks. Thank you, Dennis.
So we've now addressed all questions received. If you have any further queries on the company's activities, please contact the company during normal business hours. We will now conduct a poll on all resolutions. If you would like your proxy votes to stand, you do not need to take any further action. If you have not lodged a proxy vote and you wish to have your vote counted, or if you wish to amend a proxy vote already lodged, please follow the process and vote by selecting the vote icon. The poll will be closed in a few moments. We encourage you to finalize your vote. We now take it that all shareholders have voted and declare the poll closed. This concludes the formal business of the meeting.
Details of the results of the meeting will be posted on both the company's website and the ASX market announcements platform as soon as practicable. I will now ask Chris Oates, our Managing Director, to provide an operational update on the company.
Thank you, Chris. Good morning, everyone. Like Martin, before I present the operational update, I would like to pause and extend my sincere condolences and that of our management team to Krista's family at this time. I would like to extend a warm welcome to all of you for attending the annual general meeting of Duratec Limited today. Duratec achieved strong growth in revenue and profitability in FY24, continuing the steady growth trend the company has delivered since its inception. Our compound annual growth rate continues at a strong level of 32.5%.
The acquisition of AMB Welding in January 2024 through WPF bolstered the company's strategic expansion within the energy sector in the NT and doubled our workshop fabrication facility. Based on the successful acquisition of AMB, we have very recently purchased the business assets of another company here in Perth called GF Engineering and entered into a lease for a 12,000 sq m fabrication and office facility at Naval Base WA. Improved revenue contributions from all sectors reflected favorable operating conditions across our markets. Earnings per share was AUD 0.0866, up 9.5% on FY23, while dividends paid to shareholders during FY24 totaled AUD 10 million, representing a solid return. Our balance sheet remained strong with net cash of AUD 65.2 million at the 30th of June 2024, able to support key growth objectives.
This is slightly down compared to FY23 due to the significant investment being made for future growth and the continuous provision of solid returns to shareholders through dividend payments. Our order book, tenders, and pipeline remain very strong and after delivering four months of revenue in FY25, the order book is very similar to our full year announcement with just over AUD 400 million of work on hand. Master services agreement and annuity style contracts made up AUD 145.8 million of revenue for FY24, representing approximately 26% of revenue compared to 19% in FY23. We have a strong focus on growing MSA work with existing clients and adding new clients, particularly in the energy sector. This revenue sits outside of our order book.
The key business drivers are strongly active in all key markets and segments, and our subsidiary companies of WPF, MEnD, and DDR have all had a great year and are very well positioned for strong growth in FY25. In FY24, our workforce of 1,132 employees completed a total of 1,588 projects while maintaining high standards of safety and quality standards. For the 12-month reporting period, we recorded a lost-time injury frequency rate of zero and a total recordable injury frequency rate of 2.74. We continue to invest heavily in safety and training programs and remain vigilant on ensuring that safety is embedded in all parts of our business. Our defense sector delivered revenue of AUD 220 million and gross profit of AUD 23.6 million.
This was below our financial expectations, but well above expectations in terms of future potential with large-scale projects, mainly through our Duratec-Ertech joint venture, DEJV, at HMAS Stirling in WA. Duratec has worked with the Department of Defence, DoD, in the early evolution of their contracting models towards an early contractor involvement head contract, ECIHC model. In the first half of FY24, DEJV was awarded the Parkes Wharf ECIHC project, and more recently, in FY25, DEJV has been awarded two further ECI projects for the maritime infrastructure upgrade and the controlled industrial facility and supporting facilities at HMAS Stirling. Following the 2024 DoD strategic review and reprioritization, we have seen a focus shift to the increase in spend in guided weapons, nuclear-powered submarines, northern bases, and a general increase to defense personnel.
This aligns with Duratec's key offering and geographical location and presents significant medium to long-term opportunities for growth in this sector. We have good work on hand in this sector with a growing order book and some fantastic opportunities ahead. Our mining and industrial sector, M&I, delivered a strong result in FY24 with revenue increasing 79.4% to AUD 155.6 million year on year and a gross profit increasing 70.1% to AUD 33.6 million. Long-term relationships and the early engagement of clients position the company for success in the M&I sector. Securing master services agreement and annuity style contracts delivered by Duratec's self-perform capability contributed to the strong performance, and this trend continues to provide good quality revenue and provides us with confidence for FY25 and beyond.
Duratec has maintained a consistent presence at several key client locations with our teams delivering specialist remedial solutions on structural integrity and remediation projects and delivering shutdown projects as well as recurring maintenance work. Due to the aging assets in the M&I sector, maintenance and remediation activities are expected to grow. In October of this year, we won a AUD 44 million structural integrity project for Rio Tinto at Tom Price. Our building and facade sector BNF delivered revenue of AUD 111.3 million, a 42% increase from FY23, and gross profit of AUD 20.9 million, up 73.4% compared to FY23, with long-term margins looking positive as we increase self-perform delivery and gain traction in the ECI space. The ECI take-up on projects within the BNF sector is still strong, driven by the client's desire to understand their assets extremely well prior to undertaking major refurbishment.
Our dedicated team is at the forefront of early design and procurement for large-scale projects and is well positioned to secure and deliver more works in this sector. The involvement of MEnD Services is often included in this process. Our energy sector, which covers the maintenance and decommissioning of oil and gas assets, as well as the expansion and refurbishment of hydrocarbon storage infrastructure, is positioned for strong growth. In FY24, the energy sector delivered revenue of AUD 46.6 million and a gross profit of AUD 15.3 million. The fall in revenue is reflective of the successful delivery of the aviation fuel hydro package at Western Sydney Airport in the first half of FY24. The company has since secured the WSA Cargo Works contract, continuing its presence on site into FY25.
MSA annuity style work will continue to grow in this sector, and the company has recently gained vendor status at Woodside for the very first time, which opens up maintenance opportunities across their assets. Our final sector, Other, which includes the remediation and upgrading of marine, transport, and water infrastructure, delivered FY24 revenue of AUD 22 million and a gross profit of AUD 2.7 million, down on revenue but up on profitability compared to last year. We continue to deliver and target transport infrastructure projects across the country, and the tender pipeline is strong. The work-on-hand position of more than AUD 40 million and the vast number of live tenders supports Duratec's growth trajectory for FY25 and beyond. Moving now to have a look at our subsidiary companies, starting with WPF. In 2024, WPF delivered a record revenue of AUD 33.8 million and a strong gross profit of AUD 9.6.
This revenue is accounted for in the energy and M&I sectors. WPF recently completed the business asset acquisition of GF Engineering for a total value of AUD 2.2 million. As part of that transaction, we have entered into a lease for a 12,000 square meter fabrication and office facility at Naval Base WA. This facility provides WPF with three individual workshops and a combined area of over 3,000 square meters under roof to greatly increase our fabrication ability. The purpose-built workshops allow for the segregation of carbon steel, exotic, and stainless steel manufacturing. The facility is strategically located in Naval Base, Western Australia, which provides Duratec close proximity to support its defense operations at HMAS Stirling, Garden Island and to capitalize on opportunities from the Henderson Defence Precinct, recently announced by the state government and federal governments.
The transition to the new facility will take three to six months, and this process is well underway. The outlook for WPF remains exceptionally positive, and we anticipate strong growth in FY25 and beyond. During FY24, MEnD firmly established itself as a market leader of digital transformation in the asset management and sustaining capital sectors. A number of significant projects were delivered, including the largest reality model, inspection, testing, and engineering scopes on the Cape Lambert A Jetty for Rio Tinto. MEnD continues to innovate proactively and in FY24 launched AnaView version 2.0, our digital defect management platform. Our lab services continue to grow, and we have recently been reaccredited to NATA standards. Our MEnD capabilities continue to lead Duratec into many other opportunities, and we have built a lot of trust within all clients that use the MEnD services.
We still work collaboratively with BHP Iron Ore, Yara Pilbara, Rio Tinto, and many other clients. Our MEnD team recently relocated to our new office in East Perth, which includes a purpose-built laboratory. This will allow MEnD to cater for an increased demand for their services. DDR Australia, Duratec's Aboriginal and Torres Strait Islander Associate Business, delivered FY24 revenue of AUD 67.6 million, more than double FY23 revenue of AUD 32.7 million, and a gross profit of AUD 9.6 million. DDR completed the acquisition of RC Construction in January 2024. This acquisition, coupled with an increase in defense spend, contributed to the strong FY24 result, of which WPF contributed AUD 15 million of the AUD 67.6 million revenue. Looking ahead, we see very strong growth outlook for DDR by itself, along with a full year contribution from WPF. Moving now to our pipeline and outlook.
Duratec's strong order book of just over AUD 400 million and sizable pipeline of opportunity positions us for significant future growth. Approximately one-third of all tenders have some type of ECI content within them, and with this ECI content, our win rate greatly improves. This, along with the MSA contracting work, provides us confidence for FY25 and well beyond. Our outlook in all sectors is extremely bright. Our medium-sized project win rate is more than double in the second half of FY24. These projects have all commenced and will contribute positively to FY25, along with expanding our MSA annuity contract works to both existing and new clients. The ECI contract model is gaining traction in all sectors. A key focus for Duratec will be the AUD 8 billion spend at Garden Island Stirling Base.
Our past work with the DoD has shown our ability to deliver large-scale projects in line with high quality and safety standards, and Duratec is well positioned to secure opportunities identified in the tender pipeline. We see strong momentum and demand for our self-performing capabilities in the mining, energy, and building and facade sectors. Our national footprint positions us well to work with clients right across Australia to assist them in delivering their strategy in a safe and efficient manner. Duratec has demonstrated a history of organic growth and is well funded for future growth, including potential strategic acquisitions, and we have an exceptional team within our company helping us deliver on this strategy. In terms of guidance, Duratec's FY25 revenue is expected to be in the range of AUD 600 million-AUD 640 million, delivering a forecast EBITDA of AUD 52 million-AUD 56 million.
With the above outlook, strong work on hand, and our subsidiary companies performing very well, we have not seen our company in a better position to deliver for you in FY25 and well beyond. I would like to thank the board, the leadership team, all employees, our valued clients, and suppliers for their continued support. Finally, I would like to thank you, our valued shareholders, for your ongoing support of Duratec. This completes my address, and I will open the meeting to questions relating to my operational update.
Dennis, do we have any questions here?
Thanks, Chris. None have come through during the course of your presentation. No additional ones at the moment. I'll just refresh my screen and give people a chance to ask a question. Looks like one might have come in. Let me just check. Mr.
Adrian Cridland has asked about the announcement of two ECI contracts on the 17th of October, both joint venture contracts. What size are they would these contracts be if you were successful in ECI phase?
Yeah, it's hard to answer that exactly. There's public information out there through Googling and other elements, but ultimately, there's an AUD 8 billion spend on the island that's very public, and then within there, there are other budgets. The problem is too, and why it's hard to exactly say, is it's only at about 50% design. So throughout the design process, things change. Things come in and out of it, as they do for any design, for any project. So really, the budgets to talk about any particular budget on any of them is a bit premature, but they're sizable contracts. As you can see, the scope of work that's out there.
So that's probably our limited information at this point.
Thanks, Chris. No other questions have been received.
Okay, well, thank you, Chris. That concludes the Annual General Meeting for Duratec Limited. I thank you all for your attendance and now declare the meeting closed. Thank you.