Insights

Why the SRG Global (ASX:SRG) share price is rocketing 7% today

Companies that could operate through the COVID shutdowns have tended to be able to reward shareholders.
The post Why the SRG Global (ASX:SRG) share price is rocketing 7% today appeared first on The Motley Fool Australia. –

The SRG Global Ltd (ASX: SRG) share price is rocketing in morning trade, up 7%.

Below we take a look at the engineering-led mining services and construction group’s guidance update and outlook for the 2022 financial year.

What guidance update did SRG report?

SRG Global’s share price is soaring after the company reported it expects earnings before interest, taxes, depreciation and amortisation (EBITDA) to come in at the high end of the $45–47 million range previously forecast.

The group’s cash position improved from a net debt of $8.4 million in the 2020 financial year to net cash of $12.2 million in FY21.

It reported that due to the nature of the work it carries out, COVID-19 shutdowns have only had a minor impact on its performance and labour. In fact, the company has record work in hand of $1 billion, a 41% increase year-on-year.

Commenting on the revised guidance, David Macgeorge, SRG Global’s managing director said:

SRG Global continues to take significant steps forward in the execution of our strategy. 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…

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. We have also managed the operational startup and contract execution exceptionally well throughout this period.

The SRG Global share price also appears to be getting a lift from its FY22 expectations. Looking ahead, Macgeorge added that with available funds to drive growth of $88.2 million, plus undrawn equipment facility of $27.7 million, he expects EBITDA in the 2022 financial year to be around 15% higher than in FY21.

SRG Global reports its full year audited results on 24 August.

SRG Global share price snapshot

Over the past 12 months SRG Global shares have gained 106%, compared to a gain of 24% on the All Ordinaries Index (ASX: XAO) over that same time.

Year-to-date, the SRG Global share price has gained 30%.

The group pays a 3% annual dividend yield, fully franked.

The post Why the SRG Global (ASX:SRG) share price is rocketing 7% today appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Calix (ASX:CXL) share price jumps 11% to all-time high
Abacus (ASX:ABP) share price dips despite property acquisition
The Immutep (ASX:IMM) share price is up 6% today
2 exciting ASX growth shares that might be worth buying

Warren Buffett owns these dividend-paying growth stocks — should you?

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!