Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Here’s why the Johns Lyng (ASX:JLG) share price is rising

The Johns Lyng Group Ltd (ASX: JLG) share price is rising today after the company released a trading update.

Johns Lyng is an integrated building services group delivering building and restoration services across Australia. Its core business is the ability to rebuild and restore a variety of properties and contents after damage by insured events including impact, weather and fire events.

Earnings upgrade from Johns Lyng

The business has upgraded its revenue and EBITDA (EBITDA explained) forecast for FY21.

Forecast EBITDA has been upgraded to $52.1 million, representing a 10% increase on earlier guidance of $47.4 million which was provided in February 2021.

That guidance represents business as usual (BaU) EBITDA growth of 36% year on year. Including catastrophe recovery work, EBITDA growth is expected to be 27%.

Forecast revenue has been upgraded to $558.2 million, representing a 6.5% increase on earlier guidance of $524.1 million provided in February 2021. This represents a 19% business as usual revenue increase year on year (or 13% growth including catastrophe recovery work).

The upgrade was driven by “ongoing strong demand” for the group’s core business as usual services, and a significant increase in catastrophe recovery activity during FY21, primarily in northern NSW and south-east Queensland.

John Lyng said that while catastrophe work is a major contributor in FY21, the bulk of revenue from more recent catastrophe events will be realised in FY22.

Management comments

Johns Lyng CEO Scott Didier said: “Our insurance building and restoration services businesses continue to grow and continue to deliver. They have been the backbone of our business for nearly two decades and they have yet again performed very impressively in FY21. 

CAT related activity is an additional bonus to our performance and we’ve been kept very busy in that respect during FY21, helping clients and communities respond to some of the disasters that have hit, mainly in NSW and Queensland earlier in 2021.

Workflow has been very strong and we’re still working through a significant pipeline of jobs. This CAT activity is a significant driver of this upgrade and our strong performance for FY21 more broadly.”

Summary thoughts on Johns Lyng and the share price

I don’t know a lot about the company, but it’s clearly doing well at the moment. If there continues to be more damaging weather events then earnings could keep rising.

It could be one of the ASX growth shares to keep an eye on if profit can keep growing.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report — or get it emailed to you — for FREE by CLICKING HERE NOW or the button below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content