NRW Holdings Limited (ASX: NWH), which is a civil and mining contractor has got selected as the preferred Contractor by Fortescue Metals Group Ltd (Fortescue) (ASX: FMG) where NWH is supposed to deliver the stage 1 of the Earthworks, Roadworks, and Drainage Works of Fortescue’s Eliwana Rail Project.
To commence the project of stage 1 of the Earthworks, Roadworks and Drainage Works both the parties will soon be finalizing the remaining formalities. The total project cost is approximately $57 million.
Further, the announcement very clearly states that the company will be utilizing its existing civil construction taskforce for the project.
NWH has maintained a track record of positive performance since its listing on ASX. The overall performance of NWH remains 646.07%. In ten years, the performance of the company is 648.72%. The previous one-year performance of the company is 1.86%. However, its last three months performance remains negative. In the past five days, the performance of the company is 7.19%.
The company holds a strong financial position as per the financial statement of the company. As a result, it was also able to support Gascoyne Resources through the provision of a $12 million loan facility.
For the financial year ending 30 June 2018, the company generated revenue worth $754.3 million that is almost double as compared to the previous fiscal year. The net profit in FY2018 is approximately $42.2 million which increased by 48%.
The company’s balance sheet highlights a net asset base of $272.643 million. It means that the company holds a position to meet its long-term obligations. However, it might face a little difficulty in its working capital requirements and in clearing short-term debts as the difference between the total current asset which it owns worth $206.613 million and its total current liabilities of $186.035 million are minimal. The total shareholder’s equity is worth $272.643 million.
The company was successful in securing new work which is approximately $1.7 billion which indicates the operating efficiency of the company.
The company was able to generate $74.759 million through its operating activities where the primary source of cash inflow was in the form of receipts from the customers.
The company used $114.813 million in its investing activities where the primary source of cash outflow was in the form of acquisition of property, plant, and equipment. The other source of cash outflow was through the payment for the subsidiary.
There is a net cash inflow of $56.636 million through the investing activities of the company. The primary source of cash inflow was through the issue of equity instruments of the company and the borrowings. Also, the company is highly committed towards the debt repayment. In FY2018, the company repaid around $34.877 million.
By the end of FY2018, there was an increase in the cash and cash equivalent as compared to the previous fiscal year. In FY2018, the net cash available with the company is $58.846 million.
By the end of the trading on 31 December 2018, the closing price of the share was A$1.615 which was 0.025 points below its previous trading day’s closing price. The stock holds a market capitalization of $616.46 million and a PE ratio of 14.14x.
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