NRW Holdings (ASX: NWH) has signed off on another big year, with strong revenue achieved on the back of profitable acquisitions, contract wins and extended agreements.
NRW Holdings has provided its results for the year ending 30 June 2019.
HIGHLIGHTS
Operations
· Revenue of $1,126.3 million, an increase of 49% compared to the prior comparative period (pcp)
· Comparative EBITDA increased to $144.0 million up 54% on pcp
· Pre-tax earnings include a $33.5 million impairment of amounts related to Gascoyne Resources Ltd (Administrators Appointed)
· NPATA up 19% to $40.4 million
· Drill and Blast business delivered strong earnings improvement in second half
Strategic
· Completed acquisition of RCR Mining Technologies for $10 million, funded from cash – provides significant diversification in service offering
· Secured new Civil contracts for three major Western Australia iron ore producers – South Flank, Eliwana and Koodaideri
· Agreement with Stanmore Coal to extend Mining services activities – increased contract value to circa $950 million with minimal new capital outlay.
Balance Sheet
· Cash holdings increased to $65.0 million, strong cash conversion at 95%
· Structural improvement in Debt – Acquisition finance and Corporate note related debt being repaid; new debt is Asset finance for equipment to support contract extensions
· Gearing at very modest 12.2%, an improvement over the pcp
· Final Dividend declared of 2 cents fully franked
Commenting on the company’s performance for the year Jules Pemberton, NRW’s Chief Executive Officer and Managing Director, said: “Before addressing the results I wanted to reiterate that the safety and wellbeing of our people remains our highest priority.
“It was therefore with great sadness we reported that Jack Gerdes, an excavator operator working for Golding at the Baralaba North Coal Mine in Queensland, was fatally injured on 7 July 2019.
“The investigations are still ongoing and Golding has and continues to cooperate with the Mines Inspectorate, both onsite and at a corporate level, to support their investigation into the accident.
“FY19 has been another year of strong growth, with a significant increase in revenue to $1.1 billion while maintaining a strong cash balance of $65.0 million. The results were, however, impacted by the impairment of pre-administration balances totaling $33.5 million relating to Gascoyne Resources (ASX: GCY) entering into voluntary administration.
“NRW continues to work on the project where gold output has improved significantly since the administration process commenced. New civil work, mining contract extensions and improved performance in drill and blast have all contributed to our success over the past financial period.
“Our highly successful acquisition of the RCR Mining Technologies business has added to our diversified capability offering, and the services and people are now well integrated with the NRW business.
“This acquisition forms part of NRW’s strategy to build a broader, through the cycle services business. 2019 also marks NRW’s 25-year anniversary. NRW was founded in 1994 and has been on a fascinating journey of geographical expansion, diversification and growth.
“Today, NRW is a well-established and highly regarded contractor employing more than 3,000 people across the mining, energy, civil infrastructure and urban development sectors. In celebrating this milestone, we wish to thank everyone who has contributed to our success over our first 25 years.”
