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DUR - Duratec
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
one step ahead of the herd
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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.
Last edited by Ferg; 05-01-2023 at 09:55 PM.
Reason: typo
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DURATEC SECURES $100M WHARF AND HARBOUR BASIN UPGRADECONTRACT
http://research.iress.com.au/IDS/old...091850000&ppv=
chugging along up 15% since first post
one step ahead of the herd
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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/
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Originally Posted by Ferg
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
one step ahead of the herd
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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%
one step ahead of the herd
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Nice upgrade today. Almost a bagger here in less than 6 months, great ride…
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Originally Posted by sb9
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
one step ahead of the herd
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latest company presentation ... the stock is trading near highs still , all good
one step ahead of the herd
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Going from strength to strength.,,
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