The engineering company’s share price is heading north on the back of some good earnings news.
The post GR Engineering (ASX:GNG) share price lifts 12% on record FY21 revenue appeared first on The Motley Fool Australia. –
The GR Engineering Services Ltd (ASX: GNG) share price is soaring on Tuesday as the company reported its FY21 results.
The GR Engineering share price is now trading at $1.64, a 12.71% jump into the green.
Let’s uncover how GR performed this year.
GR Engineering share price lifts on record revenue and strong earnings
The company outlined a number of investment highlights in its report, including:
Record revenue in FY21 of $392.4 million, also a 76.4% year-on-year growth schedule
All-time record EBITDA of $37.2 million, up from $11.3 million the year prior
Strong operational cash flows with cash at bank of $69 million – an 84% year-on-year increase
Profit before income tax (PBIT) of $33.7 million, from a loss of $9.7 million
Net profit after tax (NPAT) of $14.9 million, up from a loss of $4.7 million a year ago
Final dividend of 7 cents per share, fully franked.
What happened in FY21 for GR Engineering?
The company outlined several progress points that could potentially impact the GR Engineering share price.
The most notable takeout from GR’s FY21 earnings is that it recognised record revenue of $392.4 million, which also signifies a 76% year-on-year growth.
Moreover, the company also achieved its record EBITDA this year of $37.2 million, a 292% increase.
In addition, GR reversed the loss it posted in NPAT and PBIT last year, growing both figures to around $15 million and $34 million respectively.
Moreover, the company also detailed several project completions in FY21, such as the Thunderbox past plant project and the Lake Way Potash project.
As well, the company announced a final dividend of 7 cents per share, fully franked, up from 5 cents per share in April 2021 and 4 cents per share in October 2020. Thus, shareholders will enjoy total dividends of 12 cents per share for FY21.
As such, the company recorded earnings per share (EPS) of 14.9 cents per share, well up from a loss of 4.7 cents per share in FY20.
GR Engineering consequently left the year with a net operating cash flow of $49.5 million, up from $11.2 million the year prior.
What did management say?
GR Engineering managing director Geoff Jones said:
GR Engineering achieved multiple project completions in FY21 that were on time and on budget. The safe and successful delivery of these projects reinforces GR Engineering’s reputation as a proven process engineering design and construction contractor.
Looking forward, Jones added:
Based on GR Engineering’s strong order book and balance sheet, the business is well placed to continue to deliver returns to its shareholders through FY22 and FY23.
What’s next for GR Engineering?
According to the company, GR has a “strong order book” that is concentrated in Australian projects.
Moreover, it has been “building its pipeline for both FY22 and FY23” and forecasts FY22 revenue in the range of $440 – $460 million.
In addition, GR’s order book contains five works that “will continue into FY22”, with an additional five work opportunities in the pipeline.
The GR Engineering share price has posted a year to date return of 32%, outpacing the S&P/ASX 200 Index (ASX: XJO)’s return of about 14% this year.
Should you invest $1,000 in GR Engineering right now?
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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.