01/12/2020 - 15:41

SRG ups earnings guidance to $45m

01/12/2020 - 15:41

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SRG Global has forecast solid earnings for the current financial year, supported by its $1 billion pipeline of work across a number of sectors including building, transport and iron ore.

SRG ups earnings guidance to $45m
David Macgeorge says SRG will continue building momentum in 2021.

SRG Global has forecast solid earnings for the current financial year, supported by its $1 billion pipeline of work across a number of sectors including building, transport and iron ore.

SRG expects to earn between $42 million and $45 million in FY21, an improvement on its previous earnings guidance of $38 million to $42 million.

The company has secured $550 million worth of contracts since July, with the most recent being $100 million in work on residential towers at Elizabeth Quay and in Brisbane.

The contract wins have lifted SRG's work-in-hand to a record $1 billion, up 42 per cent since June 30.

SRG expects further near-term contract wins, including with repeat clients.

Managing director David Macgeorge said the company’s strategy had been to shift towards a greater proportion of consistent earnings.

SRG expects its earnings profile to be two-thirds annuity, or recurring, in FY21 and beyond.

“This strategy puts the company in a very strong position to continue building momentum into 2021, providing the confidence for our upgraded guidance,” Mr Macgeorge said.

“The company is well placed to continue to fund future growth requirements with our strong liquidity/balance sheet position.”

The outlook for SRG remained positive, Mr Macgeorge said, given the company’s exposure to diverse sectors.

Its FY21 earnings will come from work in the transport, water, building, chemical, steel, iron ore, gold, alumina, oil and gas, and renewables sectors across Australia.

Shares in SRG closed up 7 per cent to trade at 38 cents.

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