Tasmea (TEA) H2 2024 earnings summary

Executive summary

• FY24 pro forma revenue reached $407m, up 10.8% year-over-year; statutory revenue was $400m, up 25.0% from FY23.

• Pro forma EBIT grew 27.4% to $54.8m, 1.5% above prospectus target; statutory EBIT rose 53.2% to $46.4m.

• Pro forma NPAT was $36.9m, up 29.9% year-over-year and 10.3% above prospectus target; statutory NPAT was $30.5m, up 56.5%.

• Fully franked full-year dividend of 6.5cps, up 85.7% from FY23.

• Strong cash generation with operating cash flow of $49.8m and a 107% OCF/EBIT conversion rate.

Financial highlights

• Pro forma revenue up $39.8m (10.8%) and statutory revenue up $80.0m (25.0%) compared to FY23.

• Statutory EPS was 15.2c, up 53.5% from 9.9c in FY23; pro forma EPS 18.4c.

• Net tangible assets per share increased to 19.27c from 5.68c in FY23.

• Net debt stood at $33.2m, equating to 0.6x pro forma EBIT.

• Return on capital employed 28.2%; return on equity 37.2%.

Outlook and guidance

• Positioned for continued organic and acquisition-driven growth, focusing on fixed plant maintenance, remote area services, and recurring revenue streams.

• Integration of recent acquisitions and continued pursuit of programmatic acquisitions are key priorities for FY25.

• Maintenance activity expected to remain stable despite softening project work.

• Strong industry tailwinds in mining, electrification, and infrastructure underpin positive outlook.

• Strong customer base and high repeat revenue underpin growth strategy.