Hello everyone out there
....Today a flat response to a great half yearly report?
Price currently down 2% after a small run into the green at open
(yes *ahem* I did support this by collecting a few at $3.13 in my excitement this morning)
(most likely off one of you people?)
Now, reading the presentation with an uneducated eye, seeking news of ‘strategic developments’ that might make a difference to the FY2021 outlook. (Thanks
@pbawley ) I am not noticing anything except as said in the press release :
“The acquisition of BGC Contracting represents another significant milestone in the development of NRW and after the highly successful acquisitions of Golding Group and RCR Mining Technologies, delivers a further step change in scale and diversity for NRW’s business in Australia.”
.... It seems to me the NRW team love DIAB and the way it diversifies the company with ongoing revenue and more, the tender pipeline has jumped by an additional $2Billion to $10Billion (new thread
@Riskup?)
and maybe more acquisitions are in the pipeline ....although not until they have bought BGC-acquisition-related gearing down to under 30% (by June?)
...
“Our strategy of growing and diversifying our revenues through organic growth or strategic acquisitions remains our long-term strategy continuing our evolution and further developing the company as a multi-disciplined ‘through the cycle’ services business.”
W2B - Civil
....and it looks as if BGC’s W2B project may have been a superfluous part of the BGC acquisition ?
It has reduced EBITDA margins for NRW’s CIVIL division to between 4% and 5% from last year’s 5%
[2019 Annual Report]*
....It needs to be finished but there is no profit in it.
I wonder how long until completion?
July 27, 2017 - “ BGC Contracting has also been awarded a contract to undertake major works on the Tyndale to Maclean section of the Woolgoolga to Ballina upgrade, which is about 13 kilometres in length.”
BGC Contracting land major contract on $4.3bn Woolgoolga to Ballina highway upgrade
Published on July 26, 2017
.... “While BGC did not disclose the value of the contract, a company statement listed that the work will include bulk earthwork, some road and pavement construction as well as bridgework and finishing work.
Business News WA predicts the job to be “in the range of about $100 million.”
COMPARATIVE MARGINS
* The 2019 report said last year’s EBITDA margins were:
CIVIL .....................................5% (H1’20 — 4% - 5%)
MINING.................................18.2% (H1’20 — 18% - 19.5%)
DRILL & BLAST.....................8.5% (H1’20 — 11% - 13%)
MINING TECHNOLOGIES ...3.2% (H1’20 — 7% - 8%)
(20min delay)