NRW Holdings has reported a profitable 2017 financial year, but has withheld a dividend payout following its acquisition of Golding Group.
NRW Holdings has reported a profitable 2017 financial year, but has withheld a dividend payout following its acquisition of Golding Group.
The Perth-based contractor reported a 33 per cent rise in net profit for the 2017 financial year to $28.5 million, with revenue up 28.6 per cent to $370.3 million.
Underlying earnings before interest, tax, depreciation and amortisation was up 24.6 per cent to $58.8 million.
In a statement, NRW said it had elected not declare a final dividend on the back of the company’s acquisition of Golding Group, which was announced earlier this week.
“At this stage, the directors consider the most appropriate use of available funds is to retain flexibility for the integration of Golding and ensure an appropriate level of gearing is maintained,” it said.
NRW last paid a dividend in 2014.
Managing director Jules Pemberton said FY17 had been a highly productive and successful period for NRW.
“Operationally we experienced strong growth in both revenue and earnings, and during the second half of the year successfully integrated the Hughes Drilling acquisition into our Action Drill & Blast business,” he said.
“Corporately, the equity raising earlier in the year provided the foundation for a full restructure of our debt and agreement of more supportive banking arrangements.
“Debt was restructured through the NRW corporate note offering which was successfully placed in December last year.
“Continued diligence applied to our cash management processes has resulted in near full conversion of earnings as cash and contributed to a reduction in net debt of $38.5 million through the year.”
Mr Pemberton said while the results were good, the better news was a continued recovery in its core markets together with high levels of tendering activity and better visibility of future prospects.
“In addition to the new clients secured this year and increasing activity levels across the business, over the next 12 months a number of major sustaining iron ore projects are expected to commence,” he said.
NRW shares were 0.2 per cent higher to 89.7 cents each at the close of trade.