- Revenue up 11.5% to $2.3B in line with guidance.
- Earnings (EBITDA) increased to $266.7M up 6.7% compared to 30 June 2020 (FY20); Earnings (Operating EBIT) of $120.6M were lower than FY20 due to WA Pilbara project cost increases.
- Net cashflow from operations of $147.4M reflects increased working capital pending resolution of outstanding claims.
- Boggabri asset sale completed July 2021 reduces pro forma net debt to $88.7M compared to $139.7M at 30 June 2020 – implies gearing of circa 16%.
- Major order awards in the year include Bunbury Outer Ring Road and Karara Mining (Notice of Award) increasing the year end order book to $3.4B.
- Letter of Intent (LOI) received from Coronado Curragh Pty Ltd to extend Mining operations at Curragh valued at circa $1.0B to $1.4B (August 2021).
- Capital expenditure in the year totalled $77.9M mostly for sustaining and maintaining the current fleet in line with forecasts and well below the depreciation run rate of $146.1M.
- Primero acquisition completed in February 2021 – results include five months of Primero activity within NRW’s Minerals, Energy & Technology (MET) segment.
- Final fully franked dividend declared of 5 cents per share in line with revised Dividend Policy advised at the half year.
Jules Pemberton, Managing Director and CEO, commenting on the results said:
“The COVID-19 pandemic has had a significant impact on the business throughout the financial year. The most important outcome however is that our workforce has been able to continue to get to work and deliver some outstanding projects for our clients whilst working safely and within a range of restrictions related to the pandemic.
That we have delivered these results, during a record period of activity for the Group, is a testimony to all members of our workforce who have my thanks for their dedication and persistence. Since the pandemic began we have integrated three new businesses into the NRW Group, BGC Contracting, DIAB Engineering and Primero. These acquisitions were all highly strategic for the platform we now operate however managing the safety, integration and mobility of more than 3000 people who joined the Group during this time has been very challenging.
Resource availability and labour cost pressures impacted WA Pilbara project completion costs and schedules. Both these issues were attributed to COVID-19 measures including border closures which limited the available workforce. Most of those projects however were complete at 30 June 2021, other than resolution of claims and contract variations. Whilst these projects have had the most impact on our financial performance it is important to note that large parts of our business have performed to expectations.
The focus of the business over the last few years has been to add capability, broaden the regions in which we operate and diversify our service offering. The acquisition of Primero, which we completed early this year builds on our recent acquisitions of DIAB Engineering and RCRMT and represents a further diversification of our strategic platform to offer clients continuity of services from early planning, design, development, construction to operations and maintenance.
In addition, through the MET division, the Group now has the capability to participate meaningfully across the new energy sectors of Hydrogen and Lithium through Primero’s existing capability but also in the renewables sector where our clients are seeking solutions to reduce reliance on hydrocarbons based energy sources. Our MET business also gives the Group a build own operate, design and processing capability so we are now truly able to participate through the entire life cycle of resources projects”.