Ann: NRW Full Year Results Presentation, page-18

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1 hour ago | Josh Chiat
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NRW pays out record

Mining contractor NRW says its dividend payout ratio of 71.5% (60.5% on a franked basis) is a record for a financial year, delivering an 8c per share final payment to shareholders.

It took total payments to 16.5c per share, on the back of a 10.2% lift in EBITDA to $288.8m and 11.4% rise in revenue to $2.7b for FY23.

However, the Perth-based mining and civil services player copped a 6% hit to its share price as boss Jules Pemberton revealed it had copped a big hit on fixed price contracts, especially at its Primero Group division, an engineering contractor which specialises in lithium projects.

It had also identified reporting errors that would require Primero to restate its 2022 results.
“Unfortunately, as a result of these challenges our margins have been under pressure and in some businesses, notably Primero, the impact of cost escalation and labour availability on fixed price projects has been significant,” Pemberton said.
“We have acted swiftly to address these issues and worked with our clients to reach equitable outcomes.
“We also identified a prior period error in Primero’s revenue recognition that affected the results of two projects that were completed in the 2022 financial year. Correcting this error, which was the overstatement of revenue and margin by $10.3 million, will require Primero to restate its 30 June 2022 financial statements.
“Whilst not material to the Group’s 2022 published results, as described at note 1.9 in the Financial Statements, the prior period results have been restated in accordance with the applicable accounting standard requirements, and the prior period error corrected through opening retained earnings in the NRW Holdings FY23 financial statements.
“Additional review processes for all significant projects have been implemented at the NRW Group level to ensure that this error will not be repeated. We have also appointed new executive leadership to Primero during the year to ensure the ongoing management and reporting of contracts is consistent with NRW group processes.”