Record profit, further growth for NRW

NRW Holdings has announced a record net profit of $41.2 million for the year to June 30, on the back of record levels of work for its civil contracting business and the continued strong performance of its mining division.

The company said today it had achieved record sales revenue of $745 million, a 22 per cent increase on financial year 2010.

The $41.2 million net profit was a 17 per cent increase on the previous year.

NRW said its civil division experienced considerable success over the year, with more than $650 million of contracts in its order book and the finalisation of a preferred contractor agreement with Rio Tinto.

The company’s order book for its mining services division is around $1.35 billion.

NRW said because of the fully-secured order book, it remained optimistic regarding its growth prospects, but was also cautious of political and economic uncertainty.

“The labour market remains tight but continued emphasis on employee training and development initiatives will bolster both recruitment and retention,” NRW said in a statement.

“NRW looks forward to continueing its strong growth profile with expectations of further high demand for services continuing through FY13 and will focus on capitalising on the strength of activity in the sector.”

The company is forecasting earnings growth of 53 per cent into FY12 with an EBIT target of 10 per cent.

“NRW has the balance sheet and funding to grow strongly into FY13 on the basis of current order book of $2 billion and a significant pipeline of opportunities,” the company said.

At close of trade today NRW’s stock had gained 6.3 per cent, to $2.53.