Shares in diversified contractor NRW Holdings (ASX: NWH) have jumped sharply on an upbeat AGM presentation from chief executive Jules Pemberton, who told shareholders the company’s order book was $1.7 billion while the pipeline of new work opportunities stood at $6 billion. Mr Pemberton said he was “increasingly optimistic” about NRW’s prospects, aided by the acquisition in August of the east coast-based Golding business.
NRW achieved a solid result for the FY17 financial year, as our Company continued to focus on diversifying in commodities, geographical location and widening our client base.
For the financial year of 2017 NRW delivered a better than 20% year-over-year increase in revenue to $370.2 million. Net profit after tax increased by 25% from the previous year to $28.5 million, driven by higher earnings and lower financial costs. All divisions of the NRW Holdings group recorded improved figures on the FY16 results.
Over the past 12 months, the business continued to focus on growing our operations throughout Australia. In August 2017 NRW Holdings acquired Golding, one of Queensland’s largest civil infrastructure, urban development and mining contractors. With an exceptional reputation and a solid client base Golding is a strong fit for NRW’s growth strategy.
In December of 2016 we announced the successful acquisition of the East Coast Division of Hughes Drilling, allowing the expansion of drill and blast activities. This acquisition supports our strategy to strengthen the Company’s presence in the East Coast of Australia, at a time of improving market sentiment. The acquisition has now been fully integrated into the Action Drill & Blast business.
During the year the business successfully restructured its debt through an innovative corporate note issue. The corporate note issue has now restructured debt payments over the life of the assets while being utilised and will improve liquidity in the business. As at 30 June 2017 debt levels sit at $20.8M, a significant reduction from FY16 of $59.3M.
While the Board recognises the Company’s improved performance during the year, it has determined that a dividend will not be declared for the year ending 30 June 2016. The Board remains committed to reintroducing returns to shareholders in the near future, however its focus at this time remains on reducing debt further and strengthening the Company’s balance sheet.
Our People
Our Company’s success relies heavily on the skill and dedication of our employees across the organisation, and their safety remains our highest priority. This year we have worked hard to reduce our total recordable injury frequency rate by 13%, down to 6.22. We will continue to put a strong focus on improving safety across the Company in the coming year.
I would like to thank our leadership team and employees for their efforts over the past few years in a difficult operating environment. As our contract awards increase, we have had the opportunity to reemploy ex-employees, ensuring our Clients are working with a knowledgeable, experienced NRW workforce, as we continue to strengthen our reputation for excellence in project delivery.
Looking forward
In a sector that remains highly competitive, NRW has achieved a solid work in hand position of $1.7 billion. This result, together with our strong focus on client relationships and project delivery, positions our Company for further growth, particularly in the eastern states of Australia.
As our Company continues to focus on opportunities in improving market conditions, the tender pipeline sits at a healthy $6.0 billion placing NRW in a position to deliver strong returns to our shareholders in the coming years.
Finally, I would also like to acknowledge and thank our shareholders for their ongoing support this year. Our Company has a proven track record under a variety of market conditions, and I thank you for the confidence you place in NRW.
Kim Hyman
Company Secretary
