Perth-based contractor NRW Holdings has enjoyed another active day on the ASX, closing nearly 50 per cent higher after nearly tripling in value on Friday.
Perth-based contractor NRW Holdings has enjoyed another active day on the ASX, closing nearly 50 per cent higher after nearly tripling in value on Friday.
NRW opened at 16.5 cents each and rose to as much as 29.5 cents per share, before resting at 24.5 cents at the close of trade.
On Friday, NRW shares emerged from a trading halt to close 185 per cent higher to 16.5 cents each, on the back of the state government’s announcement on Thursday that NRW and its joint venture partner Salini Impregilo had won preferred contractor status for the $2 billion Forrestfield-Airport Rail Link.
NRW also announced after-market on Friday that it had returned to the black with a net profit of $6.1 million for the six months to December, despite revenue falling 73.6 per cent to $150.4 million, in line with the company’s expectations.
NRW’s earnings before interest, tax, depreciation and amortisation dramatically boosted 788.8 per cent to $24 million, compared to the previous corresponding period, while net debt was reduced from $80.5 million to $27.1 million.
The company declared no interim dividend.
Chief executive Julian Pemberton said the business had stabilised after facing many challenges last year.
“Our focus on the successful delivery of our current projects and cost reduction measures has contributed to the EBITDA result for the six month period,” Mr Pemberton said.
“This solid operating performance has also assisted the business in achieving agreement on a complete debt rescheduling package with our existing banking group.
“In broad terms, all debt due as at April 2016 will be repaid in equal instalments over a 33 month period ending December 2018.
“The agreement reduces current debt obligations of $70 million due to be paid in the next 12 months to $42 million under our revised terms and allows NRW to operate in an environment where debt obligations and current operating cashflows are well aligned.”
Looking ahead, the company has grown its order book to $780 million, with about $144 million worth of work to be delivered during the second half of the financial year.
NRW expects to remain profitable in FY16.
