NRW s profit slumps 54pc

UPDATE 1.20pm: Shares in NRW Holdings slumped after the mining contractor posted a 54 per cent slump in first-half profit and halved its interim dividend on the resources sector slowdown.

The company announced a profit of $22.4 million for the six months to the end of December last year, compared with $48.6 million in the previous corresponding period.

Revenue over the period fell 35.74 per cent to $521 million.

NRW slashed its interim dividend from eight cents to four cents, representing a 50 per cent payout ratio.

The company said it had net debt of $39.8 million at the end of the period and cash of $174.3 million.

Its order book lifted by $300 million to $1.3 billion.

Managing director and chief executive Jules Pemberton said while overall market conditions remained challenging, the business was awarded a number of new contracts and extensions during the half, collectively valued at $820 million.

"Securing these contracts has helped maintain the group's order book stability over the medium term," he said.

NRW said its funding facilities and solid cash position provided a strong foundation for future organic growth and potential acquisitions.

The company reiterated full-year revenue guidance of $1-$1.2 billion.

NRW shares fell 13 cents, or 9.09 per cent, to $1.30 at the close.

The West Australian

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