Shares in NRW Holdings rose by more than 30 per cent today after the Perth-based contractor foreshadowed strong full-year earnings and brought forward its $10.7 million interim payout to next month.
NRW said it had achieved record revenue of $1.6 billion already in the 10 months to April, compared to $1.12 million reported in the company’s 2019 full-year results.
Managing director Jules Pemberton said NRW was on track to meet its FY20 revenue guidance of $2 billion.
He said he was proud in the way the company had navigated through the coronavirus pandemic.
“We have had to make significant changes to the way we work but have been able to safely do that whilst supporting our clients to meet project objectives and day-to-day operational requirements,” Mr Pemberton said in an ASX announcement.
Mr Pemberton said bidding activity for the company’s BGC Contracting business, which NRW acquired in December for $116.4 million and renamed NRW Contracting, continued to improve on the back of a likely acceleration in public infrastructure projects.
“NRW is very well placed to address a growing list of opportunities through both its Golding business on the east coast and the significantly enhanced construction business in the west,” he said.
NRW acquired the Golding civil infrastructure business in 2017.
Its six subsidiaries also include RCR Mining Technologies, which the company purchased from RCR Tomlinson in 2019 for $10 million.
RCR is currently working with NRW’s DIAB Engineering business (acquired as part of the BGC Contracting transaction) to deliver a $17 million fabrication package for Newmont Goldcorp’s Tanami mine expansion project.
“The ability to deliver this work from our regional facilities, in Bunbury, Geraldton and our Welshpool facility, to a major Australian project reflects the growing capability of NRW in the Australian manufacturing sector to provide specialised capital equipment for mining clients,” Mr Pemberton said.
The company has reported earnings before interest, tax, depreciation and amortisation of $177 million in the 10 months to April, compared to $144 million achieved in FY19.
NRW expects debt of around $60 million to be reported at June 30, compared with $35.4 million in FY19.
Its 2.5 cent interim dividend - previously deferred to August - has been brought forward to June 9.
Shares in the company closed up 35 per cent to trade at $2.23.
