NRW upbeat despite soft conditions

MINING and civil contractor NRW Holdings says it is in a strong position, despite reporting lower earnings for the 2014 financial year.
NRW upbeat despite soft conditions NRW upbeat despite soft conditions NRW upbeat despite soft conditions NRW upbeat despite soft conditions NRW upbeat despite soft conditions

Image courtesy of NRW Holdings.

Andrew Duffy

For the 12 months to June the company posted revenue of $A1.1 billion and a net profit after tax of $44.2 million, significantly lower than the $1.3 billion and $74.1 million reported last year.

Earnings before interest, tax, depreciation and amortisation came in at $121.4 million, while EBIT was $65.2 million, down 45% from FY13.

While most key metrics were lower for the year, NRW finished the period with a stronger cash balance and lower net debt of $34 million.

The company’s order book was also maintained at $1 billion.

“The group delivered a strong cash result contributing to a significant debt reduction of $54.6 million in the year,” NRW CEO Jules Pemberton said.

“The net debt position at year-end of $34 million results in a gearing ratio of 9.1%, the strongest balance sheet position since listing in 2007.

“The current major capital expenditure cycle is now complete, providing a foundation for continued debt reduction and improved dividends.

“Further improvement in the company’s safety performance is encouraging thanks to the diligence and effort of our workforce and was especially pleasing given the rapid deployments on projects through the year.”

Pemberton said the industry continued to face headwinds but NRW’s strong balance sheet and order book had positioned it well.

“The group’s balance sheet, funding facilities and solid cash position provide a strong foundation for future organic growth and to continue to review potential acquisitions or to implement other capital management programs,” he said.

Revenues for FY15 will depend on the timing of new work but NRW says it expects the figure to land between $1 billion and $1.2 billion.

About $700 million of forecast revenue is in the order book.