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
- Successful issue of $70 million NRW Corporate Notes used to repay $75M of bank debt. Changes term from two-year to four-year
- Raised $19.7 million through equity placement in September 2016
- Significant reduction in Net Debt to $20.8 million from $59.3 million at June 2016
- Improved gearing ratio of 10.5% compared to 39.6% at June 2016
- 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”.
