Announcement PDF Verbrec Limited ABN 90 127 897 689 Directors’ Report Verbrec Limited ABN 90 127 897 689 Interim Financial Report 31 December 2025 Verbrec Limited ABN 90 127 897 689 1 Contents Page Directors’ report 2 Auditor’s Independence Declaration 9 Condensed consolidated statement of profit or loss and other comprehensive income 10 Condensed consolidated statement of financial position 11 Condensed consolidated statement of changes in equity 12 Condensed consolidated statement of cash flows 13 Notes to the condensed consolidated financial statements 14 Directors’ declaration 26 Independent Auditor’s review report 27 This consolidated interim financial statements do not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2025 and any public announcements made by Verbrec Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. These consolidated interim financial statements are the consolidated interim financial statements of the consolidated entity consisting of Verbrec Limited and its subsidiaries. The consolidated interim financial statements are presented in Australian currency. Verbrec Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered office is: Verbrec Limited Level 14 200 Mary Street Brisbane QLD 4000 The consolidated interim financial statements were authorised for issue by the Directors on 27 February 2026. The Directors have the power to amend and reissue the consolidated interim financial statements. Verbrec Limited ABN 90 127 897 689 Directors’ Report 2 Your Directors present their interim financial statements on Verbrec Limited (“the Company or Verbrec or VBC”) and its controlled entities (“the Group”) for the half-year ended 31 December 2025. 1. DIRECTORS and COMPANY SECRETARY The Directors and the Company Secretary of the Company in office during or since the end of the half-year ended 31 December 2025 are set out below: Name Position Mr Phillip Campbell Independent Non-Executive Chairperson Mr Matthew Morgan Independent Non-Executive Director Mr Brian O’Sullivan AM Non-Executive Director Mr Joel Voss Company Secretary 2. PRINCIPAL ACTIVITIES Verbrec Limited (ASX : VBC) is a leading engineering services provider, operating across the entire lifecycle of an asset. Verbrec operates in Australia, New Zealand and the pacific and services the energy, mining, infrastructure, manufacturing, water and defence sectors. The Company is comprised of approximately 700 personnel across 14 regional locations. In December 2025, Verbrec completed agreements to: • Acquire Alliance Automation Pty Ltd and DLM Automation Pty Ltd • Divest Competency Training Pty Ltd The acquisition of Alliance Automation enhances Verbrec’s offering in digital transformation, industrial automation, cyber security and machine learning. Verbrec is well positioned to advise and provide solutions to clients on the rapid convergence of operational technology and information technology. The continuing operations of the group as at the reporting date are Engineering Services, including: • Automation & Control: Industrial automation solutions, program and project management, cyber security for operational technology, electrical engineering, data and digital solutions with a developing capability in machine learning and artificial intelligence. • Asset Management: Specialist asset management services including maintenance and reliability engineering, asset integrity, operational readiness, material and inventory management systems that increases efficiency, reduces costs and improves productivity. • Electrical, Instrumentation and Control Engineering: Specialist engineering and project delivery in low voltage and high voltage electrical systems. This includes electrical distribution and reticulation, grid connections, switchboards and motor control centres, protection systems, as well as specialist expertise and electrical equipment in hazardous areas. • Operations and Maintenance: Specialist pipeline, process plant and compressor station operation and maintenance services to the gas and mining industries. Verbrec’s operations and maintenance business revenues are primarily generated through multi-year maintenance agreements. Verbrec Limited ABN 90 127 897 689 Directors’ Report (continued) 3 • Pipeline and Process Plant Engineering: Specialist multi-disciplinary engineering and project delivery services including conceptual studies, engineering design, procurement and construction delivery, commercial services and condition assessments. We specialise in gas, oil, water and hydro-transport (slurry) pipelines including all associated facilities including compressor stations, pumping stations, terminal facilities, pigging systems, metering systems, SCADA systems and tie-ins. • StacksOn: StacksOn is the digital twin of choice for smarter and more efficient stockyards, enabling on-spec product in challenging conditions, whilst increasing throughput and reducing downtime. StacksOn visually tracks material being added to and reclaimed from stockpiles in order to maintain a 3D model of materials and grades in the stockyard. Verbrec offer customers an annual licence fee structure as well implementation services and ongoing support. Verbrec Limited ABN 90 127 897 689 Directors’ Report (continued) 4 3. REVIEW OF FINANCIAL PERFORMANCE & MARKET OUTLOOK In compiling these financial statements, the discontinued operations (under AASB 5) have been shown separately from the continuing operations and comparable numbers from previous corresponding period (“PCP”) have been presented excluding those discontinued operations. 3.1 Financial Performance Overview The consolidated interim financial results for the half-year ended 31 December 2025 compared to the previous corresponding period ("PCP") is follows: 31 December 2025 31 December 2024 Change to PCP Continuing Operations Revenue ($'000) Note 5 46,137 38,905 7,232 Gross Margin Statutory ($'000) 15,343 13,359 1,984 Gross Margin Statutory as % of revenue (%) 33.3% 34.3% (1.0%) Statutory EBITDA ($'000) Note 5 4,034 1,674 2,360 Statutory EBITDA as a % of revenue (%) 8.7% 4.3% 4.4% Discontinued Operations EBITDA from discontinued operations Note 8 7,309 1,393 5,916 Group Statutory EBITDA 11,343 3,067 8,276 Total comprehensive profit attributable owners of the Company 8,763 793 7,970 Basic earnings per share (cents) 3.1 0.3 2.8 Operating Cash Inflow / (Outflow) ($'000) 3,984 985 2,999 Net Cash2 ($'000) 11,555 (1,512) 13,067 ¹ EBITDA (earnings before interest, taxes, depreciation and amortisation) ² Cash on hand less borrowings, excluding lease liabilities. Verbrec Limited ABN 90 127 897 689 Directors’ Report (Continued) 5 DISCONTINUED OPERATIONS – Competency Training In September 2025 the Company announced that it had entered an agreement with RelyOn Australia Pty Ltd to sell 100% shares of Competency Training. This transaction completed on 28 November 2025. The impact of the discontinued operations is shown on note 8 in the financial statements. Financial Performance For the half-year ended 31 December 2025, the Group reported revenues of $46.1M, an increase from $38.9M reported in the previous corresponding period. This represents approximately 18.5% growth in the continuing operations of the business. Verbrec intends to grow the business through: • Geographic expansion • Expansion of key business units • Management and cross selling to key relationship clients • Strategic acquisitions Verbrec budgeted for and expects the H2 FY2026 to be stronger in both revenue and EBITDA than H1 FY2026. The composition of Verbrec’s revenue is broadening towards water security and sustainable mining with the acquisition of Alliance Automation, although traditional energy and gas market transitions is still a majority of the portfolio. Alliance Automation further broadens the portfolio of revenues in Defence, Infrastructure and Manufacturing. Gross margins have remained flat at 33.3% (H1 FY2025: 34.3%) including one month of Alliance Automation. StacksOn annual licensing has been re-baselined and is expected to be recognised in the second half, rather than partially split between the first and second half as it has in prior years. Group EBITDA for the half is $11.3M (H1 FY2025: $3.1M) and total comprehensive profit is $8.8M (H1 FY2025: $0.8M) (each including the contribution from the sale of Competency Training). On a continuing operations basis EBITDA is $4.0M (H1 FY2025: $1.7M). EBITDA margin is improved at 8.7% of revenue (H1 FY2025: 4.3%). Net assets of the business has increased to $32.8M at 31 December 2025 (30 June 2025: $23.8M), the increase primarily attributable to the acquisition of Alliance Automation and proceeds from the sale of Competency Training. Closing cash and cash equivalents for the half-year have increased by 197% to $21.1M (30 June 2025: $7.1M) predominantly due to sale of CT business for $11.2M. The $21.1M balance includes $3.6M in restricted cash that is required to be held under the Westpac facility as part of security for the issuance of bank guarantees. The Groups net cash position also increased to $11.6M at 31 December 2025 (30 June 25: $2.3M). Verbrec has carried forward income tax losses of $21.9M, we expect operating cashflows to continue to improve resulting in the generation of free cashflow to fund dividends. Verbrec Limited ABN 90 127 897 689 Directors’ Report (Continued) 6 The Group’s finance facilities are provided by Westpac Banking Corporation. Verbrec remains compliant with all banking covenants to 31 December 2025. Verbrec increased its facilities to accommodate the Alliance Automation acquisition and added an Acquisition Facility of $6M (redraw facility) and increased its Flexible Facility to $12M (from $8M) to accommodate additional Bank Guarantees for the Group. 3.2 Market Outlook Verbrec’s clients are adapting to the evolving energy landscape and adapting to a progressively digital world where operational technology and information technology converge. Client investment from Verbrec’s core sectors of energy, mining, infrastructure, manufacturing, water and defence is expected to continue to drive the performance of the group into the future. Verbrec’s revenues are primarily generated from the: • Energy sector: by addressing our clients needs to continue to design fit for purpose solutions for their existing traditional energy assets which may be required to deliver long into the future than previously anticipated and operate with more efficiency and at a lower cost. • Mining sector: by assisting and advising our clients in minimising their scope 3 emissions, maximising the yield of their higher grade and ‘green’ metals such as magnetite and minimising waste by using the power of StacksOn to give clients greater grade control at iron ore mines / ports and developing innovative product transport solutions. • Water sector: by providing out expertise and years of experience servicing the water authorities and operators across Australia to design, construct, maintain and optimise water assets, desalination plants and treatment facilities and provide critical advisory services on the efficient use, transport, storage and treatment of water utilised in the operations of heavy industries and mining operations. • Infrastructure & Defence sectors: by providing expertise in automation, control, electrical engineering and construction and cyber security we address our clients needs to deliver efficient and resilient defence and public infrastructure across Australia and New Zealand sites. Verbrec targets four growth markets: • Gas Market Transition: to guide and deliver solutions to our client base to design fit for purpose solutions for their existing assets to address gas as a peaking fuel rather than a base load fuel, with current prospects to participate in projects related to carbon capture utilisation and storage and biofuel / hydrogen augmentation / replacement. • Electrification & Energy Storage: by addressing the need for gas firming in a renewables rich grid, assisting our clients transition to an electrical economy with projects currently being delivered in batteries (BESS projects) and Pumped Hydro. • Operational Technology & Cyber Security: addressing the need for enhanced cyber security for operational technology while Australian critical infrastructure continues to experience elevated cyber activity, with Operational Technology environments increasingly targeted due to their potential for physical and service disruption. • Industrial Automation & Machine Learning: by increasing asset efficiency through digital transformation, and by minimising downtime, improving yield, and optimising energy and material usage, AI and machine learning help manufacturers lower operating costs and improve returns. Verbrec Limited ABN 90 127 897 689 Directors’ Report (Continued) 7 This trading environment will support ongoing demand for Verbrec’s services. DIVIDENDS On 27 February 2026 the Board has elected to declare a fully franked interim dividend of $0.001 per share for the period ended 31 December 2025. On 27 August 2025 the Board declared a fully franked final dividend of $0.001 per share for the period ended 30 June 2025. The total amount of the dividend $0.29M was paid on 17 October 2025. The group also carries $5.4M in franking credits as at 31 December 2025. AFTER BALANCE DATE EVENTS The Directors are not aware of any other matters or circumstances not otherwise dealt with in this report or the interim financial statements that have, or may, significantly affect the operations or state of affairs of the Group in future years. ROUNDING OF AMOUNTS The Group is of the kind referred to in Australian Securities and Investments Commission (ASIC) Corporations Instruments 2016/191 dated 24 March 2016 pursuant to s.341(1) of the Corporations Act 2001, relating to the ‘rounding off’ of amounts in the Directors’ Report and Consolidated Interim Financial Statements. In accordance with that legislative instrument, amounts in the Consolidated Interim Financial Statements have been rounded to the nearest thousand dollars, or in certain cases, to the nearest dollar. Verbrec Limited ABN 90 127 897 689 Directors’ Report (Continued) 8 RESOLUTION APPROVING DIRECTORS’ REPORT This Directors’ Report is made in accordance with a resolution of the Directors. The auditor’s independence declaration as required under s.307C of the Corporations Act 2001 is set out on page 9. Phillip Campbell Chairperson Brisbane 27 February 2026 Grant Thornton Audit Pty Ltd King George Central Level 18 145 Ann Street Brisbane QLD 4000 GPO Box 1008 Brisbane QLD 4001 T +61 7 3222 0200 w www.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 Verbrec Limited In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Verbrec Limited for the half-year ended 31 December 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 review; and b no contraventions of any applicable code of professional conduct in relation to the review. Grant Thornton Audit Pty Ltd Chartered Accountants CDJ Smith Partner – Audit & Assurance Brisbane, 27 February 2026 Verbrec Limited ABN 90 127 897 689 Condensed consolidated statement of profit or loss and other comprehensive income For the half-year ended 31 December 2025 10 31 December 2025 31 December 2024 (Restated) Notes $’000 $’000 Continuing Operations Revenue 5 46,137 38,905 Cost of providing services 6(a) (30,794) (25,546) Gross profit 15,343 13,359 Other income 2,041 63 Other operating expenses 6(b) (15,069) (13,370) Profit from operating activities 2,315 52 Finance expense (245) (386) Profit/(Loss) before income tax 2,070 (334) Income tax benefit/ (expense) 7 (172) - Profit/(Loss) for the half-year from continuing operations 1,898 (334) Profit from discontinued operations 8 7,063 1,195 Profit for the half year attributable to owners of the Company 8,961 861 Other comprehensive income Items that may be reclassified to profit or loss Foreign currency translation differences (198) (68) Other comprehensive income for half-year, net of tax (198) (68) Total comprehensive profit for the half-year attributable to owners of the Company 8,763 793 Total comprehensive profit/ (loss) for the half-year attributable to owners of the Company arises from: Continuing Operations 1,700 (402) Discontinued Operations 7,063 1,195 8,763 793 Earnings per share from Continuing Operations Basic earnings per share (cents per share) 0.6 (0.1) Diluted earnings per share (cents per share) 0.6 (0.1) Earnings per share for profit attributable to the ordinary equity holders of the company Basic earnings per share (cents per share) 3.1 0.3 Diluted earnings per share (cents per share) 2.8 0.3 Verbrec Limited ABN 90 127 897 689 Condensed consolidated statement of financial position As at 31 December 2025 11 31 December 2025 30 June 2025 Notes $’000 $’000 Assets Cash and cash equivalents 21,068 7,137 Trade and other receivables 20,091 14,489 Prepayments 3,576 1,456 Contract assets 5,250 2,932 Current tax assets - 3 Total current assets 49,985 26,017 Property, plant and equipment 9 1,798 1,087 Right-of-Use Assets 4,497 4,049 Deferred tax assets 10,478 8,452 Intangible assets 10 8,082 9,803 Total non-current assets 24,855 23,391 Total assets 74,840 49,408 Liabilities Trade and other payables 10,985 7,351 Contract liabilities 7,122 3,491 Borrowings_Current 12 2,478 1,128 Lease liabilities_Current 2,650 2,472 Employee benefits_Current 6,696 3,817 Provisions_Current 11 287 469 Total current liabilities 30,218 18,728 Employee benefits_Non Current 2,120 542 Borrowings_Non Current 12 7,035 3,753 Lease liabilities_Non Current 2,472 2,217 Provisions_Non Current 11 147 326 Total non-current liabilities 11,774 6,838 Total liabilities 41,992 25,566 Net assets 32,848 23,842 Equity Share capital 13 28,905 28,289 Reserves 1,082 1,362 Retained earnings 2,861 (5,809) Total equity attributable to owners of the Company 32,848 23,842 Verbrec Limited ABN 90 127 897 689 Condensed consolidated statement of changes in equity For the half-year ended 31 December 2025 12 Attributable to owners of Verbrec Share Capital Reserves Retained earnings Total $’000 $’000 $’000 $’000 Balance at 30 June 2024 27,990 719 (9,544) 19,165 Profit for the half-year - - 861 861 Other comprehensive income - (68) - (68) Total comprehensive income for the half-year - (68) 861 793 Share based payment expense - 668 - 668 Balance at 31 December 2024 27,990 1,319 (8,683) 20,626 Balance at 30 June 2025 28,289 1,362 (5,809) 23,842 Profit for the half-year - - 8,961 8,961 Other comprehensive income - (198) - (198) Total comprehensive income for the half-year - (198) 8,961 8,763 Dividends Paid - - (291) (291) Performance rights exercised 616 (616) - - Share based payment expense - 534 - 534 Balance at 31 December 2025 28,905 1,082 2,861 32,848 Verbrec Limited ABN 90 127 897 689 Condensed consolidated statement of cash flows For the half-year ended 31 December 2025 13 31 December 2025 31 December 2024 Notes $’000 $’000 Cash flows from operating activities Receipts from customers (including GST) 58,596 47,238 Payments to suppliers and employees (including GST) (54,316) (45,870) 4,280 1,368 Interest received 32 36 Interest paid (331) (407) Income tax paid 3 (12) Net cash inflow / (outflow) from operating activities 3,984 985 Cash flow from investing activities Dividends paid to shareholders (292) - Proceeds from sale of property, plant and equipment 1 - Proceeds related to sale of CT business, net of cash disposed* 11,050 - Payment for acquisition of subsidiary, net of cash acquired (3,462) - Acquisition of property, plant and equipment and intangibles (509) (305) Net cash outflow from investing activities 6,788 (305) Cash flow from financing activities Proceeds from borrowings 7,526 2,017 Repayment of borrowings (2,894) (1,407) Principal elements of lease payments (1,308) (1,290) Net cash inflow / (outflow) from financing activities 3,324 (680) Net increase / (decrease) in cash and cash equivalents 14,096 - Cash and cash equivalents at the beginning of the year 7,137 4,618 Effects of exchange rate changes on cash and cash equivalents (165) (70) Cash and cash equivalents at the end of the half-year 21,068 4,548 *The Group has elected to present a statement of cash flows that analyses all cash flows in total – i.e. including both continuing and discontinued operations; amounts related to discontinued operations by operating, investing and financing activities are disclosed in Note 8. Verbrec Limited ABN 90 127 897 689 Notes to the Condensed Consolidated Financial Statements For the half-year ended 31 December 2025 14 1 General information Verbrec Limited (the “Company” or “Verbrec”) is a company domiciled in Australia. The address of the Company’s registered office is Level 14, 200 Mary Street, Brisbane, Australia. The consolidated interim financial statements of the Company for the six months ended 31 December 2025 comprises the Company and its subsidiaries (together referred to as “the Group” and individually as “Group entities”) and the Group’s interest in associates and jointly controlled entities. The Group is primarily involved with the resources, energy and infrastructure sectors providing Engineering services primarily in Australia, New Zealand, Papua New Guinea and the Pacific Islands. The consolidated interim financial statements were approved by the Board of Directors on 27 February 2026. 2 Basis of preparation The consolidated interim financial statements for the half-year reporting period ended 31 December 2025 have been prepared in accordance with the requirements of the Australian Corporations Act 2001 and in compliance with AASB 134 – Interim Financial Reporting, that ensures compliance with International Financial Reporting Standard IAS 34 – Interim Financial Reporting. The consolidated interim financial statements do not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2025 and any public announcements made by Verbrec Limited during the interim reporting period in accordance with the continuous disclosure requirement of the Corporations Act 2001. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. 3 Estimates The preparation of consolidated interim financial statements 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. In preparing the consolidated interim financial statements, the significant judgements were made by the management in applying the Group’s accounting policies, and the key sources of estimation uncertainty for continuing operations were the same as those applied to the consolidated financial statements for the year ended 30 June 2025. Additional significant judgements and estimates arising during the period in relation to discontinued operations and business combinations are disclosed in Note 4. Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. Verbrec Limited ABN 90 127 897 689 Notes to the Financial Statements For the half-year ended 31 December 2025 15 4 Material accounting policy information The accounting policies are consistent with those of the previous financial year and corresponding interim reporting period. (a) Basis of measurement and presentation currency The consolidated interim financial statements have been prepared on the historical cost basis and are presented in Australian dollars, which is the Group’s functional currency. (b) Discontinued operations Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as loss after tax from discontinued operations in the statement of profit or loss. Additional disclosures are provided in Note 8. All other notes to the financial statements include amounts for continuing operations, unless indicated otherwise. (c) Business Combinations The Group accounts for business combinations under the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Group. The consideration transferred is measured at fair value at the acquisition date. The identifiable assets acquired and liabilities assumed are recognised separately from goodwill where they met the definition of an asset or liability and were measured at their fair values at the acquisition date. Where the net fair value of the identifiable assets and liabilities exceeded the consideration transferred, a gain on bargain purchase was recognised immediately in profit or loss after reassessment of the identification and measurement of all assets acquired and liabilities assumed. Additional disclosures are provided in Note 15. Verbrec Limited ABN 90 127 897 689 Notes to the Financial Statements For the half-year ended 31 December 2025 16 5 Segment and revenue information The Group has one reportable segment, in which it operates, being Engineering, following the sale of Competency Training. This is based on information that is internally provided to the executive group for assessing performance and making operating decisions. The Group is domiciled in Australia, with operations and projects predominantly across Australia, New Zealand, Papua New Guinea and the Pacific Islands. Revenue is attributed to the reportable segments based on the revenue owned by the subsidiaries domiciled in each region. Segment information provided to the Board of Directors and other executives within the business. The below table shows the segment information arisen from the continuing operations of the business as provided to the Board of Directors for the reportable segments for the half-year period and also the basis on which revenue is recognised. Australia New Zealand Total 31 December 2025 $’000 $’000 $’000 Services revenue - Engineering services 43,719 2,418 46,137 Total revenue from external parties 43,719 2,418 46,137 Timing of revenue recognition At a point in time 216 - 216 Over time 43,503 2,418 45,921 43,719 2,418 46,137 Australia New Zealand Total 31 December 2024 $’000 $’000 $’000 Services revenue - Engineering services 35,579 3,326 38,905 Total revenue from external parties 35,579 3,326 38,905 Timing of revenue recognition At a point in time 644 - 644 Over time 34,935 3,326 38,261 35,579 3,326 38,905 Verbrec Limited ABN 90 127 897 689 Notes to the Financial Statements For the half-year ended 31 December 2025 17 5 Segment and revenue information (continued) A reconciliation of earnings before interest, tax, depreciation and amortisation (EBITDA) to operating profit before income tax is provided as follows: 31 December 2025 31 December 2024 EBITDA $’000 $’000 Engineering services 4,034 1,674 4,034 1,674 EBITDA 4,034 1,674 Finance costs (245) (386) Depreciation and amortisation (1,719) (1,622) Profit/(Loss) before income tax from continuing operations 2,070 (334) 6 Profit and loss information a) Cost of Sales 31 December 2025 31 December 2024 $’000 $’000 Personnel expenses 19,168 17,677 Contractor expenses 3,588 3,006 Project expenses (including procurement) 8,038 4,863 30,794 25,546 b) Other operating expenses Operating expenses reflect the costs of the acquisition of Alliance Automation, as well as the month of December operating expenses for that newly acquired entity. 31 December 2025 31 December 2024 $’000 $’000 Salaries and wages 7,514 6,834 Share-based payments 533 668 Other employment related expenses 279 245 General outgoings 425 560 Subscriptions, licenses and memberships 1,132 1,052 Acquisition costs 891 - Consulting 911 686 Depreciation and amortisation 1,719 1,623 Insurance 617 745 Other administrative expenses 1,048 957 15,069 13,370 Verbrec Limited ABN 90 127 897 689 Notes to the Financial Statements For the half-year ended 31 December 2025 18 7 Income tax expenses The difference between the actual income tax expense and the income tax expense using the Company’s domestic rate of 30% is mainly attributable to current tax losses not recognised. 31 December 2025 31 Dece