GR Engineering Services Limited (ASX:GNG) (GR Engineering or Company) today announces its financial results for the financial year ended 30 June 2023 (FY23).
Financial Results:
| Revenue: |
$551.4 million |
EBITDA: |
$44.4 million |
| PBT: |
$39.7 million |
Basic EPS: |
17.0 cps |
| Cash: |
$86.0 million |
Final dividend: |
10.0 cps (fully franked) |
Overview
GR Engineering reported FY23 revenue of $551.4 million, EBITDA of $44.4 million and a profit before tax of $39.7 million. GR Engineering’s FY23 revenue result was higher than the revenue guidance of $500 million to $530 million previously provided in November 2022.
GR Engineering’s EBITDA margin percentage increased in the second half of FY23 and the FY23 EBITDA margin percentage of 8.0% was consistent with historical levels. As previously disclosed in its half year results, GR Engineering’s EBITDA margin percentage in the first half of FY23 was impacted by its Tasmanian projects. These Tasmanian projects have now been completed.
The Board has resolved to declare a final dividend of 10.0 cps (fully franked), resulting in total FY23 dividends of 19.0 cps fully franked (FY22: 19.0 cps fully franked).
Commenting on the Company’s FY23 financial performance, GR Engineering’s Managing Director, Mr Tony Patrizi, said:
“GR Engineering has achieved a number of major project completions in FY23. The safe and successful delivery of these projects reinforces GR Engineering’s reputation as a proven and reliable process engineering design and construction contractor.
Project execution levels remain high as work continues at the West Musgrave Project, Thunderbird Mineral Sands Project, Bellevue Gold Project and Cosmos Nickel Concentrator Facility Upgrade Project.
GR Engineering’s contracted and near term pipeline across the group is strong and is continuing to grow. GR Engineering is also currently working on a high volume of studies across a broad range of commodities and geographies. Based on the strong pipeline and the high levels of study work, GR Engineering’s medium to long term visibility for project work remains high.
At 30 June 2023, GR Engineering recorded a strong cash balance of $86.0 million after paying out $30.7 million in fully franked dividends to shareholders during FY23. Negligible bank debt, minimal ongoing capital requirements and strong project delivery all contributed to the maintenance of a robust and stable balance sheet.
I would like to take this opportunity to especially thank all our employees, sub-contractors and suppliers for their efforts and support across the GR Engineering, Upstream PS, Mipac and Hanlon businesses.”
Please refer to GR Engineering’s FY23 Audited Financial Report for further information on the Company’s operational and financial performance.
Read the full ASX release inclusive of Key Earnings and prospective works for FY24 below.
ASX Release
About GR Engineering
GR Engineering specialises in providing fixed price engineering design and construction services to the global resources and mineral processing industries. GR Engineering has a proven track record of delivering integrated project solutions in over 20 countries across all major commodity types. As a group, GR Engineering employs more than 500 professional, technical and support staff throughout Australia and internationally, in addition to a direct construction workforce and subcontracted personnel.
GR Engineering Services Limited is listed on the Australian Securities Exchange (ASX: GNG).
For further information please contact:
Tony Patrizi
Managing Director
+61 8 6272 6000
tony.patrizi@gres.com.au
Omesh Motiwalla
CFO & Company Secretary
+61 8 6272 6000
omesh.motiwalla@gres.com.au
Follow GR Engineering on LinkedIn.