Leading national mining and civil contractor NRW Holdings (ASX: NWH) is holding its AGM in Perth today.
Ahead of the meeting, the company has released the speeches and presentations to be given by non-executive chairman Michael Arnett and CEO Jules Pemberton to the ASX.
For the year to 30 June 2023, NRW – which employs about 7200 workers across Australia – reported revenue of $2.7 billion, earnings of $166.3 million, a normalised net profit after tax of $104.4 million and cash at year-end of $227.6 million.
In his CEO’s address today, Mr Pemberton has upgraded NRW’s FY24 revenue guidance from in excess of $2.8 billion to more than $2.9 billion and flagged that earnings were likely to be at the higher end of the previously guided range of $175 million to $185 million.
In his chairman’s address reflecting on FY23, Mr Arnett writes:
“The FY23 result was a record in the group’s history and delivered in conjunction with another year of improved safety and financial operational performance across the group.
“This was an outstanding outcome during a period of exceptionally challenging conditions across each of our key markets. This included significant unseasonal wet weather in the first half, considerable cost inflation and persistent skilled labour pressures, approval-driven factors delaying the award of several key projects and continued price competition for new work.
“The extensive diversification of the group’s business model allowed NRW to respond quickly to changing conditions. This strong operational performance saw NRW deliver record revenue, earnings and cash, enabling the payment of a record dividend.
“Looking ahead, the group has a record order book, which gives us confidence that our track record of earnings delivery and delivering on our commitments to shareholders will continue into FY24 and beyond.
“Underpinning this performance was a continued focus on the disciplined execution of our strategy to drive growth within the business.
“We welcomed the acquisition of OFI Group Holdings Ltd and its workforce to NRW. OFI specialises in industrial electrical engineering, automation, instrumentation and design and construction. The acquisition strengthens and enhances the capabilities and service delivery within the MET segment and we are proud to continue to invest in local operations in the South West of Western Australia.
“Our people are our greatest asset and the safety, health and wellbeing of our workforce is of paramount importance to us. Over this reporting period, we recorded zero fatalities and zero serious injuries. I would like to thank and acknowledge the dedicated efforts of our 7,200 people as they have been instrumental in ensuring safe and successful project delivery this year.
“Despite facing various challenges, the team has shown resilience and determination and continued to safely deliver on our commitments to our clients. Through the continual reduction in our Total Recordable Injury Frequency Rate, and the work done to date to proactively address psychosocial risks, we continue to promote a safe and supportive workplace. As always, we will continue to strive to improve these results as a key operational objective each year.
“Our standalone Sustainability Report for FY23 further outlines our continued efforts to embed sustainability principles in our business. Under the careful guidance and leadership of Fiona Murdoch, our Sustainability Committee diligently manages and reports on our Environmental, Social and Governance (ESG) matters. I would encourage all our shareholders to read the report to further understand how NRW’s ESG initiatives are benefiting our clients, communities and broader stakeholders.
“Disciplined capital management is always front of mind and NRW is committed to paying a sustainable dividend in line with the company’s dividend policy. The board was pleased to have declared a final fully franked dividend of 8c per share, up from the interim dividend which was equivalent to 6c per share on a comparable franked basis. This brings the final total FY23 cash dividend payment to 16.5c per share, delivering a record dividend to our shareholders.”