SRG Global Limited has delivered a robust half-year performance to December 2024, marked by significant revenue and profit growth alongside a strategic acquisition that bolsters its market footprint.
- 31% increase in net profit after tax to $18.9 million
- Revenue rises 21% to $619.7 million
- Acquisition of Diona Pty Ltd completed, contributing $6.9 million profit before tax
- Interim fully franked dividend declared at 2.5 cents per share
- Strong EBITDA growth in both Maintenance and Industrial Services and Engineering and Construction segments
Strong Financial Momentum
SRG Global Limited has reported a compelling half-year financial performance for the six months ended 31 December 2024, underscoring its strategic growth trajectory. The company posted a 21% increase in revenue to $619.7 million, driven by robust demand across its core service segments. EBITDA rose by 24%, reflecting operational efficiencies and higher contract volumes.
Net profit after tax surged 31% to $18.9 million, a clear indicator of SRG Global's ability to convert top-line growth into bottom-line gains. Earnings per share improved to 3.3 cents, up from 2.9 cents in the prior corresponding period, signaling enhanced shareholder value.
Segment Performance Highlights
The Maintenance and Industrial Services segment, which encompasses asset management, inspection, and specialist services across sectors such as mining, energy, and infrastructure, generated revenues of $388 million. This represented a 19.4% uplift year-on-year, with EBITDA climbing 24.7% to $56.8 million. The segment’s medium to long-term contracts have provided a stable revenue base amid market fluctuations.
Meanwhile, the Engineering and Construction segment, focused on critical infrastructure projects in water, transport, defence, and health, delivered a 24.8% revenue increase to $231.7 million. EBITDA in this segment grew an impressive 53.1% to $16.5 million, reflecting strong project execution and margin expansion.
Strategic Acquisition Bolsters Growth
A key highlight for the period was the acquisition of Diona Pty Ltd and Purple Hire Services Pty Ltd, completed on 2 September 2024 for a net cash consideration of $121.7 million. This acquisition is positioned to enhance SRG Global’s geographic reach and service capabilities, with Diona contributing $6.9 million to profit before tax during the half-year.
The goodwill recognised from the acquisition, amounting to $109.7 million, reflects anticipated synergies, expanded workforce, and future revenue opportunities. Management expects the integration of Diona to drive organic growth through cross-selling and geographic expansion.
Capital Management and Shareholder Returns
SRG Global declared an interim fully franked dividend of 2.5 cents per share, up from 2.0 cents in the prior period, demonstrating confidence in ongoing cash flow generation. The company’s balance sheet remains solid, with net assets of $374.9 million and access to substantial credit facilities to support future growth initiatives.
During the half-year, SRG also issued 15.5 million performance rights to key management and employees, aligning incentives with long-term shareholder value creation. The company continues to manage its capital prudently, balancing investment in growth with shareholder returns.
Outlook and Market Positioning
SRG Global’s half-year results reflect a company well-positioned to capitalise on infrastructure and industrial services demand across Australia. The combination of organic growth, strategic acquisitions, and disciplined execution underpins a positive outlook. However, the success of integrating Diona and sustaining margin improvements will be critical to maintaining momentum.
Investors will be watching closely how SRG navigates competitive pressures and market dynamics in the coming months, particularly as infrastructure investment cycles evolve.
Bottom Line?
SRG Global’s strong half-year performance and strategic acquisition set the stage for sustained growth, but integration execution will be key to unlocking full value.
Questions in the middle?
- How will the integration of Diona Pty Ltd impact SRG Global’s operational efficiency and margins?
- What are the risks to sustaining EBITDA growth amid evolving market conditions?
- Will SRG Global pursue further acquisitions to accelerate its expansion strategy?