This article is from the Australian Property Journal archive
INDEPENDENT Australian construction materials, equipment, and service provider Maas Group Holdings (ASX: MGH) has delivered a record result despite headwinds.
MGH delivered a net profit after tax of $84.3 million, up 22% from $68.9 million in FY23. Revenue was posted at $881.9 million, up 11% from $795.3 million in FY23. While EBITDA was at $207.3 million, up 27% from $163.1 million in FY23, with EBIT at $154.1 million, up 28% from $120.0 million.
Earnings per share were also improved at 25.7 cents, up 18% from 21.7% in FY23.
The MGH Board approved a final dividend of 3.5 cents per share fully franked.
“In spite of some headwinds we have delivered another record result with underlying EBITDA at the high end of the previously guided range, with 88% of overall growth attributable to our existing businesses,” said Wes Maas, managing director and CEO at MGH.
“Pleasingly we achieved strong cash conversion reflecting continued working capital discipline.”
MGH’s construction materials EBITDA was up 54% to $80.2 million, with 82% of growth from existing businesses, while newly acquired businesses contributed $5 million.
While Civil Construction and Hire overall EBITDA increased by 9% to $75.0 million.
Commercial real estate EBITDA declined by $37.7 million and residential real estate revenue was down 6% to $84.7 million.
“Our agreement in February with National Storage (ASX: NSR) for the sale of 9 self storage properties and joint venture to develop future self-storage projects enabled us to exceed the FY24 asset recycling targets providing a strong cash infusion. Notably, realised proceeds were in excess of book value validating previously recognised fair value gains,” added Maas.
“These strong results are a continuation of the impressive growth delivered by the business since listing. Over the five year period (FY20-FY24) MGH has achieved EBITDA CAGR of 34%. This track record of growth is a reflection of the values and owner mindset that is firmly embedded in our culture in conjunction with a strategically located asset base well positioned for the substantial renewable energy and infrastructure investment trends.”
Over FY24, MGH successfully completed a debt syndication process, increasing its Australian debt facilities to $730 million.
While the legacy asset financing facility of $165 million is to be paid down under existing terms, representing an overall increase of $295 million from the current facilities and extends maturity to 1 January 2028.
“The strong demand, reflected in increased facilities and lengthened maturity not only provides capital flexibility but also is a powerful endorsement of the underlying positive financial position of the Group,” said Maas.
