METS

NRW restores dividend on strong results

Contractor predicts strong growth in mining, civils

Staff reporter
Jules Pemberton at Diggers & Dealers 2018

Jules Pemberton at Diggers & Dealers 2018

The dividend has been reinstated after a three-year absence.

"Golding have secured a number of new contracts and contract extensions which will underpin activity in the coming years," Pemberton said.

Golding coal contracts and Western Australia mining business growth, coupled with the big BHP South Flank civil works contract, have inflated NRW's current order book to A$2.2 billion. Pemberton said at this month's Diggers & Dealers forum at Kalgoorlie about $950 million of the company's forecast FY19 revenue of $1.1 billion had been secured.

"With revenue growth of 40% expected in FY19 and a strong pipeline of opportunities, I look forward to significant growth in the years ahead," he said today.

NRW's $754.3 million FY18 revenue was double that of the previous 12 months, while EBITDA of $93.5 million compared with $58.9 million for FY17.

The company had net debt at the end of June this year of $34.4 million after repaying $31.3 million  in FY18 (for gearing of 12.6% at June 30). Cash on hand was $58.8 million at June 30.

"I'm pleased that the board has agreed to reinstate the payment of dividends by approving the payment of a fully franked final dividend for FY18," Pemberton said.

"We have worked hard over recent years to strengthen the balance sheet and remain committed to ensuring our debt levels can be fully sustained by operations."

Pemberton said at Diggers & Dealers the Goldings business had only outlaid about $13 million on capital equipment to capture circa-$730 million of new mining work since last September. Available surplus equipment within the group, and good relationships with plant hirers, would keep capex commitments low in the next 12 months, he said.

NRW had a market value of A$630 million today with its shares trading at $1.76. The shares have climbed by nearly 70% in the past 12 months to their highest level for that period.

 

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