GR Engineering Maintains Strong Earnings, Increases Interim Dividend
HY15 Headline Results
- Sales revenues $98.2 million (HY14 $49.7 million) 97.6% increase
- EBITDA $9.9 million (HY14 $7.8 million) 26.9% increase
- PBT $8.3 million (HY14 $8.0 million) 3.8% increase
- NPAT $6.5 million (HY14 $7.3 million) 11.0% increase
- Cash flow from operations $19.8 million (HY14 $16.4 million) 20.7% increase
- Interim dividend of 4.5cps (fully franked) (HY14 3cps franked to 40%) 50% increase
- HY15 net cash of $50.4 million (HY14 $45.0 million1) 12.0% increase
GR Engineering Services Limited (ASX:GNG) (GR Engineering or Company) today announced its financial results for the half year ended 31 December 2014 (HY15).
GR Engineering reported HY15 sales revenue of $98.2 million (HY14 $49.7 million), EBITDA of $9.9 million (HY14 $7.8 million) and PBT of $8.3 million). These results reflect the continued achievement of strong operational performance and financial results.
During HY15, GR Engineering generated cash flow from operations of $19.8 million (HY14 $16.4 million) and as at 31 December 2014 held net cash and net receivables of $64.0 million2.
Improvement in EBITDA over the prior corresponding period was attributable to stronger revenues, including a $15.4 million contributing for the half from Upstream Production Solutions. Continued focus on cost control also enhanced profitability in HY15.
Commenting on the HY15 financial results, GR Engineering's Managing Director, Mr Geoff Jones said:
"During HY15, we have focused on operational performance and strong safety outcomes across the group which we have been able to achieve whilst generating strong financial results.
Against a competitive backdrop for resource service providers, GR Engineering secured additional contracts in HY15, notably with the award of the $54.6 million EPC contract for the design and construction of the Keysbrook Mineral Sands Project and circa $10 million3 Wetar Copper Expansion Project EPCM contract. Together with work on hand, the award of these contracts has given the Company good earnings visibility for the balance of FY15 and into FY16.
HY15 also saw the first full half contribution to consolidate results by Upstream Projection Solutions which we are pleased to confirm has delivered operational and financial results consistent with expectations."
A summary of the HY15 financial results follow:
|Revenue from operations
|Net operating cashflow
Strategy and Outlook
GR Engineering remains focused on its strategy of growth through geographical expansion, commodity diversification and the identification of suitable acquisitions.
GR Engineering remains alert to contract opportunities in Australia and abroad and will strive to continue to increase market share in a disciplined manner. This will be achieved through the promotion of its technical expertise and reputation for successful project delivery, as well as by leveraging off its financial position.
Based on expected contributions from the Hemerdon Tungsten/Tin Project, Greater Paraburdoo Moisture Reduction Project, Keysbrook Mineral Sands Project and Wetar Copper Expansion Project, the Company has reliable visibility fo th remainder of FY15 and expects revenue in 2H15 to be consistent with revenue generated in HY15.
As at 31 December 2014, GR Engineering has net cash of $50.4 million, with $51.3 million in cash deposits5.
The Company's Board has declared an interim dividend of 4.5 cents per share (fully franked), with a record date of 18 March 2015 and payable on 30 March 2015.
Please refer to GR Engineering's HY15 Reviewed Financial Report for further information.
Half Yearly Report and Accounts
1Including cash held to secure contingent liabilities under the Company's bonding facility
2Net cash plus trade receivables less trade payables
3Based on an exchange rate of US$1.00: A$0.78
4Including cash held to secure contingent liabilities under the Company's bonding facilities
5Including cash held to secure contingent liabilities under the Company's bonding facilities.