NRW Holdings Limited (ASX: NWH) shares are up more than 5% following the release of the company’s FY19 results and FY20 forecasts.
About NRW Holdings
NRW Holdings provides diversified services to the mining, energy, civil infrastructure and urban development sectors. NRW has a presence in many geographic regions, including Western Australia, Queensland, New South Wales, the Northern Territory, West Africa and Papua New Guinea.
NWH’s Numbers
NRW reported revenue of $1,126.3 million, an increase of 49% compared to FY18. Comparative EBITDA increased by 54% to $144 million (the video below explains EBITDA) while net profit after tax and before amortisation (NPATA) was up 19% to $40.4 million.
In terms of the balance sheet, cash holdings increased to $65 million and gearing improved to 12.2%.
One standout result was an agreement with Stanmore Coal that was extended to provide additional mining services activities, increasing the contract value to around $950 million.
Dividends
NRW has opted to pay the same fully-franked dividend as last year, with the 2 cents per share expected to be paid on 10th December 2019.
Analyst Estimates
The Bell Potter NPAT estimate was $59 million, although the reported consensus estimate was lower at $53.93 million. Even so, NRW came in below expectations with NPATA of $40.4 million.
Management Commentary
NRW’s CEO and Managing Director, Jules Pemberton, said it was another strong year for the company.
“FY19 has been another year of strong growth, with a significant increase in revenue to $1.1 billion while maintaining a strong cash balance of $65 million,” he said.
“The results were, however, impacted by the impairment of pre-administration balances totalling $33.5 million elating to Gascoyne Resources (ASX: GCY) entering into voluntary administration.”
FY20 Outlook
NRW reported that the order book as at June 30th 2019 is around $2.2 billion, of which $1.1 billion is scheduled for delivery in FY20. NRW said of FY20: “We remain very confident of strong activity levels across the resources and infrastructure sectors over the years ahead.” NRW expects revenue of at least $1.5 billion in FY20, representing growth of approximately 33% over FY19.
Summary
NRW shares rose more than 5% in response to the FY19 results. With FY20 revenue growth expected to be more than 30% again, NRW may be a company to add to the watchlist.
For other high-growth shares, have a look at the free report below.
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Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.
