NRW delivers 29% Revenue growth

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  1. 83.9k
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    Australian civil and mining contractor NRW Holdings Limited (ASX: NWH) is pleased to provide its
    results for the year ending 30 June 2017.
    Highlights
    • Revenue of $370.3 (1) million up 28.6% on the same period last year
    • Underlying EBITDA (2) of $58.8 million up 24.6% on the prior comparative period
    • Net profit after tax of $28.5 million (up 33.0%) and earnings per share of 9.1 cents
    • New work secured circa $254.5 million; Order book $857 million as at July 2017
    • Balance sheet restructured
    o Successful issue of $70 million NRW Corporate Notes used to repay $75M of bank debt.
    Changes term from two-year to four-year
    o Raised $19.7 million through equity placement in September 2016
    o Significant reduction in Net Debt to $20.8 million from $59.3 million at June
    2016
    o Improved gearing ratio of 10.5% compared to 39.6% at June 2016
    o Cash holdings of $42.3 million
    • Successfully acquired the east coast business of Hughes Drilling with an order book in
    excess of $50 million Notes (1) Statutory Revenue of $344.6M plus Revenue from associates $25.7M
    (2) Underlying EBITDA excludes one off costs debt rescheduling and Hughes acquisition costs of $2.6 million
    Commenting on the results Jules Pemberton, NRW’s Chief Executive Officer and Managing Director,
    said:
    “The 2017 financial year has been a highly productive and successful period for the Company.
    Operationally we experienced strong growth in both revenue and earnings and during the second half
    of the year successfully integrated the Hughes Drilling acquisition into our Action Drill & Blast
    business.
    Corporately, the equity raising earlier in the year provided the foundation for a full restructure of our
    debt and agreement of more supportive banking arrangements. Debt was restructured through the
    NRW corporate note offering which was successfully placed in December last year. Continued
    diligence applied to our cash management processes has resulted in near full conversion of earnings
    as cash and contributed to a reduction in net debt of $38.5M through the year.
    While the results are good, the better news is the continued recovery in our core markets together
    with high levels of tendering activity and better visibility of future prospects. In addition to the new
    clients secured this year and increasing activity levels across the business, over the next 12 months a
    number of major sustaining iron ore projects are expected to commence”.
    Acquisition of Golding
    As announced earlier this week NRW will acquire Golding Group Pty Ltd (Golding). Golding provides
    a strong platform for growth into the infrastructure and urban markets on the east coast through their
    current tier one client base and highest level R5 B4 government accreditations. While the historical
    strengths of the business have been in the civil infrastructure sector, Golding also operates a
    successful mining business throughout Queensland.
    "Golding has a strong management team in place and an excellent culture throughout the business
    which is very complimentary to NRW’s,” Mr Pemberton said.
    “The business will continue to operate under the Golding brand but with strategic oversight and
    management by myself and key members of my management team.”
    Outlook
    We have seen continued recovery in the core markets in which NRW operates together with high
    levels of tendering activity and better visibility of future prospects. In addition, the recent acquisition of
    Golding represents a transformational milestone, which delivers a step change in scale for NRW’s
    business in Australia and unlocks opportunities to the growing east coast civil, urban and
    infrastructure markets.
    The NRW business is underpinned by tier one clients and the additional capabilities secured via
    Golding will assist further capitalise on our strong market position in a rapidly consolidating sector,
    especially over the next 12 months as a number of major projects including sustaining iron ore
    projects are scheduled to be committed.
    The Civil business has secured significant contract wins for Rio Tinto at Yandi and is well positioned
    to tender a growing number of prospects in iron ore and copper and gold. The Mining business has
    expanded into lithium following the award by Altura. Action Drill & Blast’s increased geographical
    reach across Australia has positioned the business to be more accessible to their Client’s projects,
    and the expansion of their fleet has significantly increased capacity.
    NRW’s forward order book including Golding totals circa $1.4 billion of which around $625 million is
    secured for delivery during FY18. The tender pipeline provides opportunities across the mining, civil
    resources, infrastructure, urban and drill and blast sectors which is currently valued in excess of $6.0
    billion.
    Our focus will remain on
    • Supporting the iron ore sector as plans for sustaining current production volumes are
    developed
    • Growing our presence in Queensland and New South Wales on the back of the recent
    Golding acquisition
    • Reviewing opportunities to expand our service offering in our core markets and to diversify
    where we have relevant expertise
    Dividend
    In the context of the recent acquisition of Golding announced on 14 August 2017 the Directors have
    decided not to declare a final dividend for the year ended 30 June 2017 (2016 – nil). At this stage, the
    Directors consider the most appropriate use of available funds is to retain flexibility for the integration
    of Golding and ensure an appropriate level of gearing is maintained. The Directors will regularly
    review the payment of dividends in light of the earnings, cash flow and franking credits position of the
    Company.

    courtesy of Bell Direct

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    ( DYOR )

    i hold NWH ( 'free-carried ' now )

    doesn't that make the 'free-carry' reduction look doubly sweet now ( no div. to lose out on )

    am still considering if to participate in the SPP

  2. 83.9k
    Posts

    NRW FY22 Result update

    NRW Holdings Limited (ASX:NWH) is pleased to provide an update to previous guidance
    provided on the full year results.
    • Revenue is expected to be $2.4 billion consistent with guidance
    • EBITA (unaudited) is expected to be $157.0M representing an upgrade compared to the
    previous guidance range of $150M to $155M
    • Order book of $5.2 billion - a new record for the group
    • Cash holdings of $219.3M
    • Net debt of $66.6M representing cash conversion in excess of 100% of EBITDA (of
    $272.4M)
    Jules Pemberton Managing Director and CEO commenting on the results said,
    “We will obviously provide more detail on the results when we release on the 18th August but
    clearly the business has performed very well despite the significant headwinds we have had to
    navigate caused by Covid, labour shortages, inflationary pressures and significant 1 in 100 year
    weather events”
    This ASX Announcement has been approved in accordance with the Company’s published continuous disclosure
    policy and authorised for release by the Board of NRW Holdings Limited.
    Kim Hyman
    Company Secretary

    courtesy of Bell Direct
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    DYOR

    i held this between September 2012 to August 2018

    and it took a bit of work ( cautious averaging down ) but i had a happy outcome

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