FY14 Financial Results

Company News

  • Sales revenue down 0.4% to $114.2 million
  • EBITDA up 56.4% to $17.2 million
  • PBT up 46.1% to $16.8 million 
  • NPAT up 89.3% to $14.2 million 
  • Cash flow from operations up 246.3% to $18.7 million  
  • Final dividend of 4.0 cps (fully franked) – total FY14 dividend of 7 cps (up 40%)
  • FY14 net cash of $36.9 million1

GR Engineering Services Limited (ASX:GNG) (GR Engineering or Company) today announced its financial results for the full year ended 30 June 2014.

GR Engineering reported FY14 sales revenue of $114.2million and PBT of $16.8 million, reflecting consistent financial performance throughout the first and second halves of the year. While FY14 revenue was a marginal 0.4% less than FY13 revenue, improved margins and the results of economies and efficiency initiatives implemented in FY13 resulted in profit before tax (PBT) improving by 46.1% over the FY13 result to $16.8 million.

GR Engineering generated cash flow from operations of $18.8 million and as at 30 June 2014 held cash and net receivables of $50.5 million1. This has enabled the Company to pay shareholders an increased final dividend of 4 cents per share (fully franked) bringing the full year dividend payments for FY14 to 7 cents per share representing a payout of 74.3% of net profit after tax (NPAT).

Commenting on the FY14 results, GR Engineering’s Managing Director, Mr Geoff Jones said:

“It is pleasing that despite a continuation of difficult trading conditions for the mining services sector generally, GR Engineering was able to deliver strong growth in profitability and improved returns to shareholders in FY14.

It is particularly satisfying to note the contributions to the Company’s solid financial performance by overseas projects and the iron ore sector reflecting successful outcomes from these two important elements of GR Engineering’s growth strategy. Growth through geographical expansion and increasing the Company’s presence in the iron ore sector remain important aspects of the Company’s growth strategy. Another important element is growth through well managed and considered acquisitions and to that end we look forward to Upstream Production Solutions’ contribution to the Company’s growth in coming years.

Negligible debt, relatively small ongoing capex requirements and consistent profitability have contributed to the maintenance of a strong balance sheet and in particular a robust working capital position thereby enabling the Company not only to fund internally the acquisition of Upstream Production Solutions but also to increase returns to shareholders.

In relation to safety performance, an LTI incurred in May 2014 resulting in the Company’s unblemished LTI record of almost four years coming to an end. This incident has further strengthened the Company’s resolve to ensure safety considerations permeate every task and function performed by GR Engineering, its staff and contractors.”

A summary of GR Engineering’s FY14 results follow:





Sales revenue




















Basic EPS




Net operating cashflow




Net Cash 30 June1




Total Equity 30 June




Please refer to GR Engineering’s FY14 Audited Financial Report for further information.

Strategy & Outlook

GR Engineering continues to drive business efficiencies and is confident of its ability to achieve these efficiencies whilst maintaining its renowned execution capability.

GR Engineering remains alert to opportunities within Australia and at the same time will continue to seek overseas opportunities. This strategy held the Company in good stead during FY14 and has provided GR Engineering with good visibility into FY15. Excluding any revenue contribution that may be received from the pending contract for the design and construction of the $55 million Keysbrook mineral sands processing facility (expected to commence in FY15), GR Engineering has approximately $110 million in contracted revenue for FY15. This forecast revenue is predominantly the result of contributions from the Wolf Minerals Tungsten Project in the UK and the Moisture Reduction Project at Rio Tinto’s Greater Paraburdoo Operations.

In addition the Company has forecast revenues of $37 million from Upstream Production Solutions (UPS) of which approximately 70% is contracted in FY15.

The acquisition of the UPS business has given the Company an additional avenue for growth and it is the Company’s intention to provide UPS with the financial and management resources needed to pursue operations and maintenance and well management opportunities in Australia’s and South-East Asia’s growing oil and gas sector.

GR Engineering will continue to apply the systems and disciplines developed over many years as an EPC contractor to a wider range of contracting models including EPCM engagements with the view to further broadening its revenue base.

Click here to download GR Engineering's annual financial report.


1.    Including cash held to secure contingent liabilities under the Company’s bonding facilities.



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