NRW Holdings has enjoyed a healthy boost to its half year revenue with the acquisition of BGC Contracting predicted to drive numbers even higher.
Since the acquisition, BGC (renamed NRW Contracting) has won a $138 million rail construction contract with Fortescue Metals Group’s Eliwana project in Western Australia.
NRW has made BGC Contracting a primary focus and expects the contractor to boost overall business growth.
BGC Contracting held an existing contract portfolio and order book of an estimated value of $1.5 billion prior to the acquisition.
“The integration of BGC Contracting is currently our key focus across all business divisions and functions,” NRW chief executive officer and managing director Jules Pemberton said.
“The acquisition of BGC Contracting which completed in December will make a significant contribution to the second half performance and will support further business growth.
“We successfully managed the integration of the RCR Mining Technologies (RCRMT) business in the year which has delivered a standout performance since the acquisition in February 2019.
“We are aiming for similar results from the BGC Contracting business.”
NRW’s $10 billion tender pipeline has reflected the business’s strong position this past half year.
The company’s revenue recorded a 55 percent increase to its revenue of $808.7 million compared with the prior comparative period.
“The acquisition of BGC Contracting was very strongly supported by shareholders through the equity raise which completed at a premium, and the subsequent share purchase plan, which completed in January 2020,” Pemberton said.
“The structure of the transaction and very good cash conversion across the business has, in our view, strengthened the balance sheet and increased our access to equipment to support operations despite the increase in gearing.
“Our strategy of growing and diversifying our revenues through organic growth or strategic acquisitions remains our long-term strategy continuing our evolution and further developing the company as a multi-disciplined ‘through the cycle’ services business.”