Half Year 2024 MAAS Group Holdings Ltd Earnings Call Transcript
Key Points
- MAAS Group Holdings Ltd (ASX:MGH) reported a strong first-half '24 result with EBITDA growth of 47% compared to the weather-affected first-half '23 period.
- The company achieved a cash flow conversion rate of 110%, with operating free cash flow just under $100 million.
- The leverage ratio fell to 2.3 times, below the midpoint of the targeted range, indicating improved financial stability.
- The construction materials and civil construction and hire divisions delivered almost three-quarters of the overall group EBITDA, showcasing strong performance.
- MAAS Group Holdings Ltd (ASX:MGH) reaffirmed its guidance for expected underlying EBITDA of $190 million to $210 million, representing 23% growth on FY23 at the midpoint.
- The company saw an increase in its Lost Time Injury Frequency Rate (LTIFR) in the first half, highlighting ongoing safety concerns.
- Revenue from the residential real estate business declined slightly year-on-year due to consistent interest rate rises and weakened consumer confidence.
- The commercial real estate business experienced a 22% decline in EBITDA, with fewer projects reaching fair value adjustment milestones.
- Operating expenses increased by 24% for the period, with 91% of the increase attributable to acquired businesses.
- The company faces challenges in integrating newly acquired businesses and achieving synergies, particularly in the Victorian quarry acquisitions.
Good morning, everyone. It's Tim Smart here, Head of Corporate Strategy and IR at Maas Group. Welcome to our first half '24 presentation. Thanks for your interest.
In terms of the presentation, I'm about to hand over to our CEO and Managing Director, Wes Maas. In the coming days, we'll be seeing many of you. But of course, as always, if there are follow-up questions or anything I can help with, don't hesitate to reach out to me. But without further ado, I'm going to hand over now to Wes. Over to you, Wes.
Thanks, Tim. Good morning, and welcome, everyone, to our first-half '24 results presentation. In terms of agenda, I'll run through the first three sections and then hand over to our CFO, Craig Bellamy, who will run through the group level consolidated financials. After which I'll wrap up, and there'll be ample time for questions.
Our strong first-half '24 results, which I'm
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