Full Year 2024 SRG Global Ltd Earnings Call Transcript
Key Points
- Record financial results for FY24 with $98.5 million EBITDA, up 23%, and EBIT up 31% to $65.6 million.
- Strong cash generation, moving from net debt of $17 million to net cash of $17.8 million.
- EPS up 15% and a full-year dividend increase of 13%, showcasing strong returns to shareholders.
- Transformational acquisition of Diona, expected to be circa 10% EPS accretive and adding $1 billion in work in hand.
- Increased guidance for FY25 to $125 million EBITDA, including a 10-month contribution from Diona.
- High dependency on the successful integration of Diona to achieve projected growth and synergies.
- Potential risks associated with maintaining a high cash conversion rate, which was 117% for FY24.
- Challenges in sustaining EBIT margin improvements, especially with the capital-light nature of Diona.
- Exposure to market fluctuations in key sectors like water security and energy transition.
- Need for continuous investment in ESG initiatives, which may impact short-term profitability.
Thanks, Darcy. And welcome, everyone, to the call today. It's a really pivotal day for us in terms of SRG Global's journey, very much a transformational day for us as a business, quite a bit to get through today. So I really touch on the key themes of the business and the go forward.
But before I do that, I'd really like to acknowledge our people. There will be a lot of SRG Global people on this call. They've done a terrific job not only in the last 12 months, but in the last four to five years, of really transforming this business and really living and breathing what we stand for live for the challenge, smartly give up -- never give up and have each other's backs. And I really want to acknowledge the great work they've done. And I'm proud to be a part of the team.
As I mentioned, a lot to get through today, so we'll really stick to key themes. If we move to slide 2, which is the executive summary. And really what you're seeing here is just evidence of the delivery of the business. So I'll focus on FY24 first, then
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