FY24 FINANCIAL RESULTS
| Revenue: |
$424.1 million |
EBITDA: |
$50.9 million |
| PBT: |
$46.1 million |
Basic EPS: |
18.9 cps |
| Cash: |
$74.6 million |
Final dividend: |
10.0 cps (fully franked) |
GR Engineering Services Limited (ASX:GNG) (GR Engineering or Company) today announces its financial results for the financial year ended 30 June 2024 (FY24).
Overview
GR Engineering reported FY24 revenue of $424.1 million, EBITDA of $50.9 million and a profit before tax of $46.1 million.
The group achieved an improved EBITDA result from a lower revenue base compared to the prior year. The EBITDA margin percentage was consistent with the half year results. This was the result of solid operational performance across the core business and from GR Production Services (GRPS) and Mipac. The lower revenue compared to the prior year reflected delays in expected contract awards across the group.
The Board has resolved to declare a final dividend of 10.0 cps (fully franked), resulting in total FY24 dividends of 19.0 cps fully franked (FY23: 19.0 cps fully franked).
Commenting on the Company’s FY24 financial performance, GR Engineering’s Managing Director, Mr Tony Patrizi, said:
“GR Engineering successfully and safely achieved multiple major project completions during the year. These completions including the world class Thunderbird Minerals Sands Project, Bellevue Gold Project and Cosmos Nickel Concentrator Facility Upgrade Project.
Project execution levels remain high as works continue on the Mungari Future Growth Project, Kathleen Valley Lithium Backfill Project and Kainantu Gold Project. GR Engineering will work through a transition period with BHP with respect to the West Musgrave Project with operations to be suspended in October 2024 and handover activities to be completed by December 2024. GR Engineering will continue to support BHP during this process.
GRPS and Mipac provided strong contributions to the consolidated group’s results. Both businesses are expected to achieve growth in FY25. During FY24, Mipac acquired Paradigm Engineers, a controls systems and electrical engineering, automation and technology services business based in Western Australia. I welcome the Paradigm employees to the GR group.
GR Engineering’s contracted and near term pipeline across the group is solid and is continuing to grow. GR Engineering is also currently involved in ongoing early contractor work and a high volume of studies across a broad range of commodities and geographies. Based on the pipeline and the high levels of study work, GR Engineering’s medium to long term visibility for project work remains high.
At 30 June 2024, GR Engineering recorded a cash balance of $74.6 million after paying out $31.3 million in fully franked dividends to shareholders during FY24. Negligible bank debt, low capital intensity and excellent 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 group.”
Read the full ASX Media Release
Read the full GRES Consolidated Annual Financial Report June 2024
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
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