- Construction specialist SRG Global (SRG) hits a two-year high as it expects to reach its 2021 financial year guidance targets
- The company says full-year earnings are expected to land at the top end of its previous earnings guidance of between $45 million and $47 million
- Managing Director David Macgeorge says SRG felt minimal labour and operational impacts from COVID-19 given the specialist nature of its business
- The company’s full audited 2021 financial year results are slated for release on August 24
- Shares in SRG Global are up 10 per cent and trading at 56 cents each at 3:26 pm AEST
Construction specialist SRG Global (SRG) has reached a two-year high share price after hitting its 2021 financial year guidance targets ahead of its full-year report.
The company said its earnings before interest, tax, depreciation, and amortisation (EBITDA) for the financial year are expected to land at the top end of its earnings guidance of between $45 million and $47 million.
What’s more, SRG said it expects 2022 financial year EBITDA to improve by 15 per cent on the FY21 result.
Given the specialist nature of its core business and the diversity of its service offering, SRG said, the COVID-19 pandemic had minimal impact on the company’s labour and operations.
SRG Managing Director David Macgeorge said the company has continued to take “significant steps” forward in executing its business strategy over the past year.
“We expect our FY21 EBITDA result to be at the top end of previous guidance, underpinned by new contract wins, strong operating cashflows, and continued margin improvement through delivering for our blue-chip client base,” Mr Macgeorge said.
“I am particularly pleased that we have continued to transition the business towards annuity earnings whilst winning a number of new term contracts in FY21.”
He added that with $1 billion worth of work in hand, SRG is well-positioned for long-term sustainable growth. This $1 billion figure is 41 per cent higher than the work on hand SRG had recorded this time last year.
Looking ahead, SRG said it had $88.2 million in available funds at the end of June — not including an undrawn equipment facility of some $27.7 million.
The company’s full audited 2021 financial year results are slated for release on August 24.
Shares in SRG Global were up 10 per cent and trading at 56 cents each at 3:26 pm AEST. The company has a $245 million market cap.