NRW Holdings has lifted its first-half profit by 90 per cent to $11.6 million on the back of a resurgent resources sector.
The result came on the back of a 13.95 per cent jump in half-year revenue to $171.3 million.
Stripping out one-out costs and abnormals, the contractor’s earnings were up 21.7 per cent to $29.2 million.
The company said its order book stood at $1 billion at the end of December and it had $31 million in cash reserves.
Net debt had fallen to $40.7 million from $59.3 million at the end of the previous corresponding period.
NRW’s managing director Jules Pemberton said he was pleased to report not only another good set of operating results but also significant improvements to our financing structure and the successful acquisition of the Hughes east coast drilling business.
“The acquisition of the Hughes east coast business further strengthens our drill and blast capability and aligns with our strategy to build on our existing presence in Queensland and also expanding our geographical service offering into New South Wales,” he said.
“The business is now integrated within Action Drill and Blast and is expected to make a strong incremental contribution in the second half of the financial year.”
Mr Pemberton noted the company’s balance sheet was in a much improved position from a year ago and its banking relationships had normalised.
“The revised debt structure provides improved liquidity and potentially additional funds to recommence payment of a dividend within the near future,” he said.
NRW shares were steady at 78.5¢ after hitting an earlier high of 85¢.
Image: Chairman Ian Burston and Managing Director Jules Pemberton at the AGM of NRW Holdings. The West Australian.