31/05/2021 - 15:00

GR improves outlook amid worker shortage

31/05/2021 - 15:00

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GR Engineering Services says its workforce continues to grow amid a tightening labour market, with its full-year revenue now expected to be as much as $390 million.

GR improves outlook amid worker shortage
Geoff Jones says GR Engineering is projecting record FY21 revenue. Photo: GR Engineering Services

GR Engineering Services says its workforce continues to grow amid a tightening labour market, with its full-year revenue now expected to be as much as $390 million.

On Monday, Ascot-based GR Engineering said both its revenue and margins were expected to improve in the second half of the 2021 financial year.

It said the impacts of COVID-19 and a tightening labour market had no material effect on the company’s margins during FY21 and, as a result, it had revised its full-year revenue guidance to between $370 million and $390 million.

Its previous forecast was in the $340 million to $360 million range.

Managing director Geoff Jones said the company was projecting record FY21 revenue and earnings based on its year-to-date results and current work.

“Given our project pipeline and near-term prospective work and continued strong cash generation, GR Engineering remains well placed to deliver returns to shareholders through FY22 and FY23,” he said.

GR Engineering’s full-year results are expected to be released in August.

The revised outlook follows the company's move to acquire global engineering and technology services firm Mipac.

In April, GR Engineering said it expected the deal would boost its FY21 revenue by $25 million, with a similar amount forecast for FY22.

It follows the company's acquisition of US business Hanlon Engineering & Associates last year.

Shares in GR Engineering closed up 1 per cent on Monday to trade at $1.34.

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