NRW Holdings Limited (ASX: NWH) is into the business of providing civil contracting services which includes construction and a range of contract mining services.
The company, today on 13 March 2019, has come up with the Euroz Investor Presentation details. As per the same, the revenue for the 1H FY19 came in at $522.6 M, an increase of 52.3% on pcp. This was seen on the back of growth witnessed in the Mining. The half-year saw New work and existing contract expansion and also the contribution from Golding for the six months in FY19 vis-a-vis four months in the FY18.
Company’s EBITDA increased to $74.3M compared to $40.3M in the prior comparative period. The EBITDA margin rose to 14.2% (comparative 11.6%). The rise was basically on the back of higher activity, improved productivity and increased fleet utilisation. Company’s EBIT more than doubled to $50M. Net Earnings have increased to $28.1M compared to $15.3M in the pcp. Order Intake in the six months circa $1.0 Bn increasing total work in hand to $2.4 Bn.
On the strategic front, the company completed $10M acquisition of RCR Mining Technologies and Heat Treatment. This acquisition is expected to provide the company with a lot of diversification into its service offering. The company has secured new civil contracts for all three major WA Iron Ore projects – South Flank, Eliwana and Koodaider.
The company has improved upon its financial position, and thus its balance sheet looks robust enough. The company’s cash holdings increased to $82.7M compared to $53.0M as at June 2018. The Net Debt improved to $12.8M compared to $34.4M as of June 2018. The firm has a low gearing of 4.3%. The Board of the company has also declared an Interim Dividend of 2 cents per share fully franked. The record date for the same shall be Wednesday, April 24, 2019, and the payment date will be Wednesday, May 8, 2019.
As regards the outlook, the Board has stated that all of its FY19 revenue guidance is already under contract. The management shall maintain its focus on securing extensions to contracts completing in FY 2019. The management also emphasised that the business turnaround is well underway with increased drill availability and improved project performance.
On the price-performance front, the stock has posted the YTD return of 50%. The company also has posted returns of 13.74%, 33.33% & 17.65% over the past six, three & one-month period respectively. At the time of writing (13 March 2019, AEST 01:40 PM), the stock of the company is trading at a price of $2.39, down 0.417% during the day’s trade with a market capitalisation of ~$ 902.14 Mn. The stock opened the day at $ 2.420, which was also the day’s high and touched the day’s low of $ 2.330, with an average daily volume of more than 249,187. It had a 52-week high price of $ 2.470 and a 52 weeks low price of $ 1.160, with an average volume of, 1,360,894 approximately.
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