DUR - Duratec

**bull....** · 05-01-2023, 11:47 AM

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/3fff1ea9d7...ember_2022.pdf

**Ferg** · 05-01-2023, 09:03 PM

Company website is here: https://www.duratec.com.au/investors...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....** · 08-02-2023, 08:29 AM

DURATEC SECURES $100M WHARF AND HARBOUR BASIN UPGRADECONTRACT

http://research.iress.com.au/IDS/old...091850000&ppv=

chugging along up 15% since first post

**Ferg** · 08-02-2023, 09:53 PM

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...2023-42828342/

**bull....** · 09-02-2023, 06:40 AM

Originally Posted by 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...2023-42828342/

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

https://cdn-api.markitdigital.com/ap...df02a206a39ff4

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

**bull....** · 01-03-2023, 03:26 PM

great result from DUR yesterday

http://research.iress.com.au/IDS/old...091850000&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%