Leading national mining and civil contracting company NRW Holdings (ASX: NWH) has reported a $97.4 million statutory net profit for the year to 30 June 2022, up 79.4% on the prior year, and declared a final fully franked dividend of 7¢ per share.
The profit result was ahead of guidance provided by the company and also highlights NRW’s very strong cash generation.
The full-year results highlights include:
- Revenue $2.4 billion up 4.6% on FY21 and consistent with guidance
- EBITA $157.0M representing an upgrade compared to previous guidance range of $150M to $155M and 30.1% higher than FY21
- EBITDA $272.4M up 2.1% on FY21: Depreciation and amortisation down 21.0% to $115.4M due to sale of Boggabri assets in July 21
- Statutory Net Profit $97.4M up 79.4% on FY21
- Normalised Earnings per share 22.5 cps up 30.3% on FY21
- Cash Holdings $219.3M up from $146.5M at 30th June 21
- Net debt lower at $66.6M compared to $171.3M at 30th June 21
- Very strong cash conversion at 111%
- Capital expenditure including equipment to support the Karara project of $206.3M
- Final Fully Franked Dividend declared of 7.0 cents per share up 40% on FY21, increasing total dividends for the year to 12.5 cents up 39% on FY21
- Major order wins in the year which have increased Order book to a new group record of $5.2 billion
Commenting on the full-year result, managing director and CEO Jules Pemberton said:
“These are the best results NRW has reported despite the challenging conditions the business has encountered over the past 12 months.
“Apart from the earnings highlight, the strong cashflow underlines the quality of those earnings and our ability to deliver a disciplined approach to balance sheet management. Gearing at 11% is well within our target range and provides flexibility for the business to not only manage through an expected higher interest rate environment but also provides opportunities for disciplined capital management.
“The results demonstrate the importance of the strategic initiatives taken to diversify our revenue streams over the past few years and the group’s ability to manage through the ongoing challenges of COVID-19, labour shortages, inflationary pressures and significant one-in-100-year weather events.
“Activity in the Civil business is lower than last year as a consequence of a relatively short down cycle in iron ore earthworks and concrete construction projects and deferment by some mining and public infrastructure clients due to prevailing market conditions. This reduction, however, has been more than offset by increased demand and volumes in the MET business.
“The results and the work we have successfully delivered to our clients is a credit to the NRW group workforce, whom I would like to recognise and thank.”