Acrow Formwork and Construction Services Limited reported record financial results for the first half of FY24, with significant increases in EBITDA (53%), NPAT (33%), and EPS (24%) compared to the prior corresponding period (PCP).
The company declared an interim dividend of 2.85 cents per share, marking a 68% increase from PCP.
Return on Equity remained strong at 32.0%.
Acrow achieved record new hire contracts, securing an 18% increase, and saw a 39% growth in its pipeline.
The acquisition of MI Scaffold expanded Acrow's Industrial Services division, contributing to group recurring revenue and expected to make up about 40% of group revenues.
Significant project wins include a five-year, $56m labor hire contract for the Snowy 2.0 project, among others in industrial and hydro projects.
The company strategically exited labor-hire contracts in the Commercial Scaffold division, focusing on growing equipment hire revenues and improving profits and margins.
MI Scaffold was acquired for an enterprise value of $36.4m, expected to be accretive to earnings per share (EPS) and funded through debt and a $15.0m capital raise.
Capital expenditure for 1H FY24 was $17.3m, excluding the MI Scaffold acquisition, with a focus on growth and maintaining a minimum 40% return on investments.
Net debt increased by $17.0m to $63.4m, primarily due to the MI Scaffold acquisition and growth initiatives, with net gearing rising slightly but remaining at comfortable levels.
Acrow reiterates FY24 guidance for revenue and EBITDA growth of 31% and 38%, respectively, driven by secured contracts, pipeline growth, and contributions from asset acquisitions including MI Scaffold.
The company continues to explore M&A opportunities and develop new products to drive growth, with a focus on expanding its presence in the Australian construction market.
CEO Steven Boland highlighted the company's momentum, profit growth across divisions, and the strategic acquisition of MI Scaffold as key factors in Acrow's strong performance and outlook.
This announcement is a summary of the company approved ASX announcement on 20/2/2024 and is based on facts from the announcement.