Seven Group Holdings has upgraded its full-year earnings guidance, after the company said it was performing above expectations due to strength in the mining industry and east coast infrastructure activity.
The Ryan Stokes-led company said it was now expecting underlying earnings for the financial year to be between 20 and 25 per cent above last year’s earnings of $376.9 million.
In the company’s half-year report, released in February, it had forecast earnings to be about 15 per cent above the previous year’s results.
Managing director Mr Stokes said unseasonably dry weather and one-off projects had also contributed to the upgrade.
“The group has exposure to some strong underlying fundamental trends that are driving the Australian economy,” he said
“Our industrial services businesses continue to benefit from an upswing in mining and infrastructure activity levels.
“The group has successfully executed a number of value accretive transactions in the financial year to date, enabling us to enhance our exposure to these core sectors while also enhancing the capital structure.”
Seven said the forecast was subject to the company and Beach Energy finalising the acquisition accounting for Coates Hire and Lattice Energy.
Shares in Seven finished 1.8 per cent higher at $20.04 each.