SHAPE Australia (SHA) H2 2024 earnings summary

Executive summary

• Achieved record FY24 financial performance with NPAT up 53% to $16.0m and EBITDA up 33% to $25.9m, despite a 2.7% revenue decline to $838.7m due to project delays.

• Diversified operations across 13 locations, expanding into non-office sectors and launching new service lines such as Aftercare & Facilities Maintenance and Design & Build.

• Backlog orders grew 33% to $457.4m, and project wins reached $947m, up 18% year-over-year.

• Declared dividends per share increased 48% to 17c, and cash and marketable securities rose 8.9% to $98.6m.

• Maintained high client satisfaction with a Net Promoter Score of +88 and 85% repeat business.

Financial highlights

• Gross margin improved to 9.1% from 7.6%, reflecting better trading conditions and project mix.

• Earnings per share increased 53% to 19.2c.

• Cash and marketable securities totaled $98.6m, with an average daily balance of $74.8m.

• Dividend payout increased nearly 50% year-over-year to 17c per share.

• DLG SHAPE contributed $3.43m in management fees and $76.5m in project wins.

Outlook and guidance

• Entering FY25 with the highest backlog order book in company history, supporting a robust revenue outlook.

• No formal forward profit guidance, but NPAT margin expected to remain stable.

• Focus on expanding into non-office sectors (Hotels, Health, Education, Retail, Defence) and regional markets.

• Modular segment expected to be earnings accretive in FY25, assuming no major project delays.

• Strategic focus on maintaining commercial office market share while diversifying capabilities and seeking M&A opportunities.