Primero posts strong financial results

PRIMERO Group has posted a positive set of results for its first full year as a listed company.
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Staff reporter

Revenue jumped 78% year-on-year to A$151.7 million, while EBITDA was up 30% to $11.7 million, excluding one-off costs of about $1.1 million.

The company's gross operating margin was 13%.

Statutory net profit after tax was up 19% to $6.2 million.

The contractor finished FY19 with $21.9 million cash and $3 million in debt, as well as $35 million in available finance.

Primero managing director Cameron Henry said the company was pleased to present such a strong set of financial outcomes in its first year of listed life.

"Revenue growth approaching 80% and underlying EBITDA growth of 30% are outstanding results by any measure. We also retain an extremely strong balance sheet with significant growth funding flexibility," he said.

The company also has a strong outlook for FY20, with roughly $800 million of qualified tender opportunities identified.

"Our committed order book for FY20 stands at approximately $90 million, which is a similar position to this time last year with respect to FY19," Henry said.

"A significant number of major contract awards across various sectors are also expected to be made over the coming months.

"We believe Primero is well-positioned to capture a meaningful share of these opportunities."

Primero is working on growing its early contractor involvement capacity and focusing on multi-year operation and maintenance, and build-own-operate work.

"Our focus on technical excellence and being a contract partner of choice remains core to the Primero business model," Henry said.

"We continue to invest in our people, systems and processes in order to further underpin our platform for confident and sustainable growth. We are also seeing building potential for larger revenue and longer duration contracts presenting across multiple commodities and business areas."

Shares in Primero dropped 3.7% to 39c, valuing the company at about $58 million.