HY19 Results Highlights
- Sales revenue: $91.3 million
- Underlying EBITDA: $5.9 million
- Profit Before Tax: $4.4 million
- Net cash flows from operating activities: $13.5 million
- Interim dividend: 4.0cps (fully franked)
GR Engineering Services Limited (ASX:GNG) (GR Engineering or Company) today announced its financial results for the half year ended 31 December 2018 (HY19).
GR Engineering reported HY19 sales revenues of $91.3 million, underlying EBITDA of $5.9 million1 and profit before tax of $4.4 million. As at HY19, the Company held net cash of $26.6 million.
Commenting on the Company's HY19 financial performance, GR Engineering's Managing Director, Mr Geoff Jones, said:
"Project execution activity was lower in HY19 against levels experienced throughout FY18, directly impacting financial performance in GR Engineering's core mineral processing design and construction business for the half. Upstream Production Solutions performed solidly, contributing to approximately half of the group's total HY19 revenue.
Positive outcomes were achieved in securing a total of approximately $42 million in new work at Carosue Dam and Fosterville, reflecting GR Engineering's strong capability in the design and construction of paste backfill plants.
GR Engineering entered into material design and construction contracts during HY19 and into the second half of FY19, most recently in relation to the Northern Wellfield project supporting the Carrapateena development in South Australia and on a conditional basis in respect of the Sandy Ridge and Thunderbird Mineral Sands projects in Western Australia and Fungoni Mineral Sands project in Tanzania.
Study activity remains strong in a supportive commodity price environment. GR Engineering remains will placed to demonstrate capacity and the resources required to achieve study conversion and successfully deliver mineral processing infrastructure to its clients."
The board has resolved to declare an interim dividend of 4.0 cents per share (fully franked).
HY19 Results Summary
A summary of the HY19 financial results:
| |
|
HY19 |
HY18 |
| Revenue from operations |
$m |
91.3 |
177.2 |
| EBITDA |
$m |
4.9 |
12.1 |
| PBT |
$m |
4.4 |
11.6 |
| Tax |
$m |
1.7 |
4.1 |
| NPAT |
$m |
2.7 |
7.5 |
| Basic EPS |
cps |
1.8 |
4.9 |
| Net operating cashflow |
$m |
13.5 |
12.6 |
| |
|
HY19 |
HY18 |
| Net Cash |
$m |
26.6 |
21.3 |
| Total Equity |
$m |
47.9 |
52.5 |
Outlook
GR Engineering enters the second half of FY19 in a supportive commodity price environment and with contracted work activity consistent to that experience in HY19.
The conditional design and construction contracts that GR Engineering has announced represent secure opportunities for activity levels to increase, however project development delays have been experienced and commencement timing remains uncertain. As a result, the Company's revenue for the second half of FY19 is now expected to be in line with HY19.
Further Information
Please refer to GR Engineering's HY19 Reviewed Financial Report for further information.
HY Financial Results
FY Financial Report
1 Excludes the impact of a $1.0 million bad debt expense attributed to the Davyhurst Gold Project refurbishment contract.