DUR - Duratec

[bull....]

spotting this one the other week , just starting to take off.

here's an analysis of the company from sohra peak capital partners

https://mcusercontent.com/3fff1ea9d792aab7f6dffe0ab/files/4f1d89e8-0c07-61db-9be8-69ace6f39218/Sohra_Peak_Duratec_Limited_Memo_December_2022.pdf

[Ferg]

Company website is here: https://www.duratec.com.au/investors/financial-reports-presentations/

In short (all figures are AUD):


Profitable and growing, historic EPS is 3.1c was flat vs last year due to a lower GP given higher construction material costs & wages
Pays franked dividends and so is FIF exempt for NZ shareholders, FY22 was 0.5c interim + 1.5c final dividend
Balance Sheet has interest bearing debts of $12m versus cash of $58m
Mostly remedial construction work with around 44% of business from Australian defence contracts
Acquisition of a consulting arm has driven a lot of referred growth, and the latest acquisition of WPF for $9m cash appears meaty.
High forecast growth for FY23 given the order book and pipeline


A clean set of accounts except for 3 things:


DUR enters into long term contracts that require the use of construction accounting methods. A component of which is the "percentage of completion" calculation which drives overall profitability, and notably margin, for the business. The auditor tagged this (not in a bad way) as involving estimates and judgement. This is normal in construction.
DUR has $39m of surety bonds that are not on the books but have been disclosed in the notes. Not necessarily a bad thing, and I expect they will be backed by insurance policies.....TBC.
for reasons explained in other threads do NOT think of 'contract liabilities' as liabilities that require a 100% cash outflow to satisfy when performing NTA calculations.

[bull....]

DURATEC SECURES $100M WHARF AND HARBOUR BASIN UPGRADECONTRACT

http://research.iress.com.au/IDS/old/20230123/02622960.pdf?uid=7231D60DAC37CAE2B7D6F74E6498CC8A1 E0B0000B3A29180CCF4E540093D250091850000&ppv=

chugging along up 15% since first post

[Ferg]

They also recently gave guidance for a massive increase in sales. Those big contract wins CC come into the P&L over a period of about 3 fiscal years.

Source for guidance: https://www.marketscreener.com/quote/stock/DURATEC-LIMITED-119075251/news/Duratec-Limited-Provides-Earnings-Guidance-for-the-Year-2023-42828342/

[bull....]

They also recently gave guidance for a massive increase in sales. Those big contract wins CC come into the P&L over a period of about 3 fiscal years.

Source for guidance: https://www.marketscreener.com/quote/stock/DURATEC-LIMITED-119075251/news/Duratec-Limited-Provides-Earnings-Guidance-for-the-Year-2023-42828342/

yep , here's update out yesterday.
nice to see they are targeting annuity type earnings

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02629097-6A1135412?access_token=83ff96335c2d45a094df02a206a 39ff4

the massive volume in the stock yesterday suggest institutional interest too me

[bull....]

great result from DUR yesterday

http://research.iress.com.au/IDS/old/20230228/02637596.pdf?uid=BF2146AADADA980593B90A0865B68A76B 3280000E8B481CE75F7E540093D250091850000&ppv=

Revenue 228,532 179,103 130,883 97,649 up 75%
Reported EBITDA 15,605 13,154 4,615 10,990 up 238%
Normalised EBITDA 16,253 14,257 5,041 11,212 up 222%
NPAT 7,846 7,035 726 7,120 up 981%

[sb9]

Nice upgrade today. Almost a bagger here in less than 6 months, great ride…

[bull....]

Nice upgrade today. Almost a bagger here in less than 6 months, great ride…

yes very nice and still looking strong. should be news on tender deals soon

[bull....]

latest company presentation ... the stock is trading near highs still , all good


https://www.youtube.com/watch?v=FfltJKQyCdY

[sb9]

Going from strength to strength.,,

[bull....]

Going from strength to strength.,,

all time highs :t_up:

[sb9]

all time highs :t_up:

Another all time high 1.30, leading into FY results.

[bull....]

Another all time high 1.30, leading into FY results.

lovely :t_up: still looking very strong

[sb9]

Price action today suggests something might be up…very strong buying again at higher highs..

[sb9]

Great result and juicy divvy, punters on HC reckon this is a $2 stock.

[bull....]

Great result and juicy divvy, punters on HC reckon this is a $2 stock.

stellar result and stock price still looking good

http://research.iress.com.au/IDS/old/20230825/02702243.pdf?uid=A4E078A62FFF9239572A2AC5708C7361A 746000024EB5C79F00DE640093D250091850000&ppv=

[Ferg]

And the growth continues. DUR released guidance for FY24 on 24 November:
https://wcsecure.weblink.com.au/pdf/DUR/02744773.pdf

Revenue $570-$610m (last fiscal year $492m)
EBITDA $54-$52m (last FY $39m)
Order book at $411m is lower than the EOY presentation of $458m
Pipeline $3.3b (EOY presentation $2.4b)

[bull....]

And the growth continues. DUR released guidance for FY24 on 24 November:
https://wcsecure.weblink.com.au/pdf/DUR/02744773.pdf

Revenue $570-$610m (last fiscal year $492m)
EBITDA $54-$52m (last FY $39m)
Order book at $411m is lower than the EOY presentation of $458m
Pipeline $3.3b (EOY presentation $2.4b)

and share price back vclose to all time high's.

[sb9]

Pushing to new highs today, sell down by insiders recently seen some blips, but now full steam ahead.