NRW Holdings' (ASX:NWH) profit dips, FY22 outlook is bright

Company News

by Melissa Darmawan

Diversified contract services provider NRW Holdings (ASX:NWH) revealed a 26 per cent fall in their full year profit at $54.3 million from a year ago but have assured investors that their outlook ahead looks bright.

The company’s operating earnings before interest and taxes fell to $120.6 million in FY21 as Covid-19 restrictions hindered their progress. Resource availability and labour cost pressures and skilled labour shortages impacted completion costs and schedules.

NRW reported a 11.5 per cent jump in their revenue at $2.3 billion compared to a year ago, in line with the company’s guidance following their largest ever acquisition of $116.4 million for BGC Contracting. Now known as NRW Contracting, Primero Group joined NRW and contributed to the revenue momentum with five months of production.

NRW saw a 6.7 per cent rise in their EBITDA to $266.7 million while their adjusted NPAT dipped 16.2 per cent. Net cashflow from operations was $147.4 million which the company said reflects increased working capital pending resolution of outstanding claims.

“The COVID-19 pandemic has had a significant impact on the business throughout the financial year,” said NRW chief executive, Jules Pemberton.

“That we have delivered these results, during a record period of activity for the Group, is a testimony to all members of our workforce who have my thanks for their dedication and persistence” she said.

The company declared a fully franked final dividend of 5 cents per share, taking the total dividend payment for FY21 to 9 cents per share to be paid in October.

Looking ahead, NRW has a pipeline of opportunities at $14.5 billion across all business segments valuing work secured for FY22 at around $2.0 billion.

Shares in NRW Holdings (ASX:NWH) are trading 17.8 per cent higher at $1.96.

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