Ventia Services Group Limited Analysis

Overview

Ventia is a leading essential infrastructure services provider in Australia and New Zealand and is structured across four Sectors:

• Defence & Social Infrastructure (D&SI);
• Infrastructure Services (IS);
• Telecommunications; and
• Transport.

Ventia has extensive capabilities across the full asset lifecycle including Operations and Maintenance (O&M), Facilities Management (FM), Minor Capital Works (MCW), Environmental Services (ES) and other solutions.

Ventia’s purpose is ‘making infrastructure work for our communities’ and its number-one brand promise is ‘safety and health above all else’. Ventia’s strategy is to ‘Redefine Service Excellence’, by being client-focused, innovative and sustainable.

Performance

The following information was extracted from Ventia Services Group Limited's half year results, released 21 August 2024 :

Ventia Services Group Limited (Ventia) today announced its interim result for the six months to 30 June 2024 delivering 10.6% increase in Revenue, 9.2% growth in EBITDA and 12.5% increase in NPATA. As a result of strong trading performance across the half, Ventia has upgraded its FY24 guidance range for NPATA growth to 10-12% compared to FY23.

Group Chief Executive Officer, Dean Banks said: “Ventia achieved robust performance in the first half by actively advancing our strategy to redefine service excellence while expanding relationships with new and established customers. Ventia secured a number of significant contracts in HY24 which is testament to our strong strategic relationships and compelling value proposition. As at 30 June our work in hand was $17.2 billion, with a client renewal rate of 93%, positioning us well for future growth.

“Ventia’s performance across the half was underpinned by continued strong performance of our Telecommunications business and increased revenue growth from our Defence and Social Infrastructure (D&SI) and Transport businesses, largely supported by higher volumes of work on contracts such as our Defence Base Services and Defence Maintenance contracts and the impact of new contracts including the Square Kilometre Array Observatory (SKAO) and NBN’s On-Demand Business Module (ODM).

“Our robust performance resulted in a 12.5% year-on-year increase in our interim dividend to 9.35 cents per share, keeping us on a sustainable and growing dividend trajectory for our shareholders,” Mr Banks said.

Group highlights:

• FY24 Guidance upgraded - NPATA growth of 10-12% on FY23
• Revenue of $3.1 billion, up 10.6%
• EBITDA of $245.8 million, up 9.2% with margin of 8.0%
• NPATA $106.7 million, up 12.5%
• Work in Hand $17.2 billion, down 1.5%
• Operating cash flow conversion of 90.7%2
• Interim Dividend of 9.35 cents per share, franked at 80%
• Continued positive safety momentum with TRIFR3 down 1.1%