NRW Holdings today confirmed it expected 35 per cent growth in revenue this year, helped by the recently acquired RCR Mining Technologies, but was coy on its plans to purchase BGC Contracting.
NRW Holdings today confirmed it expected 35 per cent growth in revenue this year, helped by the recently acquired RCR Mining Technologies, but was coy on its plans to purchase BGC Contracting.
NRW chief executive Jules Pemberton said at today’s annual general meeting the company expects revenue across its four pillars to increase to around $1.5 billion.
Mr Pemberton said the near-term tender pipeline remains consistent around $8 billion, with current submitted tenders of $1.2 billion.
“We remain confident of strong activity levels across our key sectors over the years ahead and we maintain our guidance of circa $1.5 billion in revenue for FY20, with covered revenue as at October 30 2019 at $1.46 billion,” Mr Pemberton said.
He also confirmed the company has gained $150 million in new orders since the acquisition of RCR Mining Technologies in February, which NRW purchased for $10 million.
NRW now has four business units comprising civil, mining, drill and blast and mining technologies.
“The highly successful acquisition of the mining technologies business has added to that diversified capability we now have in our fourth pillar,” Mr Pemberton said.
“Since the transaction, the business has secured a number of contracts which clients were prepared to hold off placing elsewhere during administration, which underlines the reliance clients place on the quality of equipment and services supplied by the business.”
Mr Pemberton said a key award for its mining technologies business, post the financial year, was the award of a fifth relocatable crushing plant for Fortescue Metals Group’s Cloudbreak iron ore mine in the Pilbara.
The award brought RCR’s total contracts value with FMG to $40 million.
"The (RCR) business has been successfully integrated into the group and is performing well," Mr Pemberton said today.
Earlier this month, NRW revealed it had been selected as the preferred bidder for BGC Contracting, following months of media speculation regarding the company’s interest in purchasing the BGC Australia subsidiary.
Mr Pemberton reiterated this statement in today’s meeting, saying there is no assurance of a transaction as of yet.
“However, our strategy of growing and diversifying our revenues through organic growth or strategic acquisitions remains our long-term plan continuing our evolution and further developing the company as a multi-disciplined “through cycle” services business,” he said.
At today's meeting, NRW chairman Michael Arnett said the board had closely reviewed the company's executive remuneration structures and had undertaken a restructuring of its executive pay and incentive schemes.
The results of the meeting were released this afternoon, revealing 55 per cent of shareholders voting in favour of the 2019 Remuneration Report and 53 per cent in favour of the executive incentive scheme.
Shareholders voted heavily against a board spill resolution (93 per cent).
NRW Holdings shares were up 4.03 per cent to trade at $2.84 per share, as at 4:11pm AEDT.
