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Highlights
- Saunders International has provided revenue guidance in the range of AU$44-48 million for H1 FY22.
- EBIT guidance for H1 FY22 is in the range of AU$3.3 million to AU$4.3 million.
- With strong operating cash flow during the period, the Company’s cash balance grew by over 355% from the year-ago period.
- The Company is set to provide its full-year guidance for FY22 post review of the half-yearly results.
Multi-disciplined engineering and construction company Saunders International Limited (ASX:SND) has announced its earnings guidance for the half-year period ended 31 December 2021.
The Company expects revenue to be in the range of AU$44 million to AU$48 million for H1 FY22. Earnings before Interest and Tax (EBIT) is anticipated to fall in the range of AU$3.3 million to AU$4.3 million for the reported period.
Related read: 70 years of trust: Will Saunders continue its success story in 2022?
Backed by its unique and innovative service offerings, Saunders continues to strengthen its balance sheet.
The Group reported a strong cash flow during the reporting period. The cash balance grew by 355% year-on-year to AU$30.5 million at December end 2021, up AU$6.7 million from AU$23.8 million as at 30 June 2021.
Data source: Company update, 28 January 2022
Related read: A quick glance at Saunders International’s 2021 projects
All the projections provided by the Company are subject to half-year review procedures by the external auditors.
FY22 Guidance
Saunders, during its 2021 annual general meeting (AGM) held on 21 October 2021, had provided a glimpse of the Group’s FY22 guidance. The Company expected FY22 revenue to be in the range of AU$95-105 million with an EBIT range of 4.5% to 5.5%.
Meanwhile, the Group also highlighted that tailwind across the sectors of its operations and strong balance sheet would enable securing more projects.
The Group’s order book has several projects from the federal as well as state governments. Tendering activity within the Group remains high with Saunders working on numerous project opportunities across its market sectors, especially in the infrastructure and defence.
Related read: Here’s how Saunders International (ASX:SND) is tapping Australian defence space
In the last quarter of 2021, Saunders secured a major defence contract valued at AU$165 million for the construction of 11 storage tanks in the Darwin region. The design and construction work along with engineering, procurement and construction management (EPCM) services work was awarded by US-based global solutions provider Crowley, which secured the contract from the U.S. Defence Logistics Agency.
Related read: Saunders International (ASX:SND) riding high on $165M defence contract
Saunders expects to release its half-yearly results during the week commencing 21 February 2022. Moreover, the Company would provide an updated FY22 guidance post the review of the half-yearly results.
Stock Performance: SND shares were trading at AU$1.150 midday on 1 February 2022 with a market capitalisation of AU$112.55 million. In the last one year, the stock has delivered a return of 82.54%.
