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NRW lifts first-half profit by 7pc
The West Australian

Shares in NRW Holdings were firmer after the mining contractor posted a 7 per cent lift in first-half profit to $48.5 million amid what it described as a challenging environment.

The result was achieved on revenue of $810.7 million, up 33 per cent on the previous corresponding period.

The company will issue a fully franked dividend of eight cents a share in line with the previous corresponding period.

NRW boosted its cash reserves by 52 per cent over the period to $210.4 million and had a net debt position of $28.8 million at the end of the period.

NRW's chief executive and managing director Jules Pemberton attributed the solid result to contract wins and securing contract extensions across the company's businesses.

The company expects full year revenue to be $1.4-$1.5 billion with an NPAT margin of 6 per cent.

"A focus on internal efficiencies, rationalising input costs and realising synergies across the Group will continue as we retain NRW's capacity to grow organically or through acquisition," NRW said in a statement.

"The strong cash position with substantial funding facilities in place provides flexibility for this growth enabling NRW to execute its strategy into FY14 and beyond."

The company had an order book of $1.35 billion and expected solid conversion from a potential $4 billion worth of work for which it had tendered in the second half.

NRW shares were up 10 cents, or 5.33 per cent, to $1.975 at 9am.