Mastermyne Group (MYE) H2 2024 earnings summary

Executive summary

• Achieved record profit of AUD 39.6 million for FY2024, marking the successful completion of an 18-month turnaround plan, improved operational performance, and the sale of the PYBAR business at an enterprise value of AUD 65 million.

• Exited loss-making and legacy contracts, divested non-core assets, reduced overheads, and secured a AUD 25 million equity investment from M Resources.

• Core business now focused on Mastermyne, Wilson Mining, and MyneSight, with a robust order book of AUD 280 million and a contract pipeline of AUD 1.4 billion.

Financial highlights

• Revenue from continuing operations reached AUD 294 million, with underlying growth of AUD 27 million (10%) but a net reduction due to project exits.

• EBITDA from continuing operations was AUD 31.8 million, up AUD 42.5 million year-over-year.

• EBITA from continuing operations was AUD 22.4 million, up AUD 43.5 million year-over-year.

• NPAT from continuing operations was AUD 21.2 million, up AUD 52.5 million year-over-year, setting a new group record.

• Total comprehensive profit was AUD 39.6 million, an improvement of AUD 114 million on FY2023.

• Net cash position of AUD 21.8 million at year-end, reversing a net debt position of AUD 115 million last year.

• Operating cash flows improved to AUD 39.7 million, with lower capital expenditure due to project exits.

• EPS (diluted) from continuing operations was 6.0 cps, compared to (20.8) cps in FY2023.

Outlook and guidance

• Solid foundation for growth in FY2025, with focus on core capabilities, diversification into adjacent activities, and leveraging majority shareholder's industry network.

• New AUD 30 million undrawn working capital facility established, enhancing funding capacity.

• FY2025 priorities include diversifying client base, expanding project portfolio, and enhancing competitive advantage.

• Order book remains at AUD 280 million, with a deep pipeline of AUD 1.4 billion in contract opportunities.

• Key risks include potential workforce redeployment, Anglo American Steelmaking Coal sale, legislative changes, and coal price fluctuations.