Stokes-led Seven Group Holdings has posted a 10 per cent increase in revenue for 2024 financial year, buoyed largely by strong growth from its industrial services businesses.
Revenue hit $10.6 billion, up 10 per cent on FY23’s $9.6 billion, while earnings before interest and taxes hit $1.42 billion, up 20 per cent on FY23.
Managing director Ryan Stokes said the industrial services arm of the business buoyed the results.
“Our industrial services businesses, which delivered a 28 per cent EBIT expansion underpinned SGH’s results, with outstanding performance in FY24 from WesTrac and Boral,” he said.
“Over the last decade, SGH has delivered an 18 per cent compound annual growth rate in EBIT, highlighting the quality and core-plus nature of our industrial services businesses, enhanced by operating discipline and financial agility.”
He said SGH’s decision to take 100 per cent ownership of Boral was a key strategic outcome for the year.
SGH acquired Boral in May, after submitting a revised takeover offer of $1.70 per share, up from the $1.50 per share price previously offered in February.
“With full ownership, we now have complete access to Boral’s strong cash flow generation and quality assets, including the significant long-term value potential in the property assets,” he said.
“This provides SGH shareholders the full benefits of Boral’s ongoing performance journey.”
WesTrac revenue hit $5.8 billion, up 19 per cent on FY23, which coupled with cost controls saw the company achieve a 25 per cent uptick in earnings before interest and tax to $623 million.
But results were somewhat dampened by the poor performance of companies outside the industrial services sector, with Seven West Media – which SGH owns 40 per cent of – reporting a 69 per cent drop in profit after tax to $45 million.
The results came after an ABC Four Corners episode on a Monday night, which revealed serious allegations against senior staffers from former employees of the Seven Network.
Aside from SWM, Beach Energy – the SGH-backed oil and gas exploration and production company – also hampered the overall result after posting a 11 per cent decline in net profit after tax.
Looking forward, the company expects another strong year, with WesTrac having one of its strongest capital sales pipelines in decades, with earnings guidance for FY25 expected to hit high single-digit earnings before interest and tax growth.
Shareholders will be paid a 30 cents per share dividend, up 30pc on FY23’s 23cps dividend, and bringing FY24 total dividends to 53cps.
