The West

NRW s profit slumps 40pc

UPDATE 2.40pm: NRW Holdings has posted a 40 per cent slump in full-year profit to $44.2 million, but the mining contractor's shares rose on hopes of better returns to shareholders in the year ahead.

The result came on the back of a 17 per cent slide in revenue to $1.1 billion.

The contractor will pay a final fully-franked dividend of five cents a share in line with last year, bringing its full-year payout to nine cents a share, representing a payout ratio of 57 per cent of after tax earnings.

The dividend is payable on October 29.

The company said it had reduced net debt by $54.6 million to $34 million, reducing its gearing ratio to 9.1 per cent at the end of the period.

It held cash of $155.5 million.

NRW managing director and chief executive Jules Pemberton said full-year revenue was in line with guidance despite challenging market conditions.

He said the company had entered the new financial year with a solid order book of $1 billion.

"The current major capex investment cycle is now complete providing a foundation for continued debt reduction and improved dividends," he said.

Mr Pemberton said the company's strong balance sheet provided a solid basis for organic growth as well as acquisition possibilities and possible capital management measures.

Revenue in FY2015, which remained dependent on the timing of new work, was expected to be between $1-$1.2 billion, of which about $700,000 was already secured.

NRW shares were up 5.5 cents, or 5.29 per cent, to $1.095 at the close.

The West Australian

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