NRW Holdings (ASX: NWH) has provided its annual financial statement for the year ended 30 June 2020.
The current financial year has been eventful on a number of fronts. The Company has delivered record revenue, strong earnings growth and excellent cash conversion. The successful acquisitions of BGC Contracting and RCR Mining Technologies (“RCRMT”) both completed in calendar year 2019 have made significant contributions to the strategic development of the company.
All of this has been achieved despite having to deal with an entirely new set of challenges created by the responses needed to address COVID-19. Most of our activities were classified as essential services in the early days of Federal and State virus measures.
Whilst we have seen significant cost impacts to our operations as a consequence of the virus, revenue has been maintained in line with guidance provided post the BGC Contracting acquisition. Cost impacts included dealing with roster changes, border closures, social distancing and staff logistics. The Company has not accessed any of the State or Federal support packages for any part of its operations. We entered the early phases with a strong balance sheet and increased liquidity. We took early action to retain funds by deferring the interim dividend payment given the uncertainty that we all faced in those early days.
Through the last six months activity levels and cash flow remained as planned and consequently in May we were able to announce that the interim dividend would be paid in June 2020. We remain vigilant across all parts of the business and while we haven’t seen any material change to our activities the ever-changing threat brought about by COVID-19 requires us to be ready to respond at all times.