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Ventia Services Group Limited Analysis

Overview

Ventia is a leading essential infrastructure services provider in Australia and New Zealand and is structured across four Sectors:

  • Defence & Social Infrastructure (D&SI);
  • Infrastructure Services (IS);
  • Telecommunications; and
  • Transport.

Ventia has extensive capabilities across the full asset lifecycle including Operations and Maintenance (O&M), Facilities Management (FM), Minor Capital Works (MCW), Environmental Services (ES) and other solutions.

Ventia’s purpose is ‘making infrastructure work for our communities’ and its number-one brand promise is ‘safety and health above all else’. Ventia’s strategy is to ‘Redefine Service Excellence’, by being client-focused, innovative and sustainable.

Performance

The following information was extracted from Ventia Services Group Limited's full year results, released 21 February 2024 :

Ventia Services Group Limited (Ventia) today announced its full-year result for the financial year ended 31 December 2023 (FY23), delivering 10% revenue and EBITDA growth, with NPATA of $202.1m up 12.5%, outperforming the top end of our guidance range.

Ventia Group Chief Executive Officer, Dean Banks said: “Our strategy is to redefine service excellence through being client focused, innovative and sustainable. Our FY23 result is another consistent and reliable performance for our investors, which is testament to the success of our strategy and operating model. In 2023, we achieved cross-selling growth of 48%, built on a renewal rate of 87% and the embedding of VenSights (data and analytics platform) across the business. We also submitted our emission targets to the Science Based Targets Initiative (SBTi) for validation.

“Financially we achieved solid performance and growth across all sectors. We delivered contracted Work in Hand of $18.1 billion, revenue and EBITDA growth of 10% and NPATA exceeding the top end of our guidance range. We generated revenue of more than $1.2 billion across the year from new projects, and importantly the spend from our top 10 clients has increased at a CAGR of 23% over the last three years, illustrating Ventia’s long-term relationships, commitment to service excellence and our compelling value proposition.”

Highlights

  • NPATA of $202.1 million up 12.5% on FY22
  • Strong business performance, with growth across all sectors
  • Continued positive safety momentum with TRIFR1 down 11%
  • Revenue of $5,676.4 million, up 9.8% on FY22
  • EBITDA of $465.2 million, up 10.8% with margin of 8.2%
  • Work in hand $18.1 billion
  • Operating cash flow conversion of 88.8%2
  • Final Dividend of 9.41 cents per share, franked to 80%, with total dividend for FY23 of 17.72 cents per share, an increase of 12.5%
  • Guidance for FY24 - NPATA growth of 7-10% on FY23

“Ventia’s Statutory NPATA of $202.1m was up 12.5% on the prior corresponding period (pcp), which underpinned our final dividend of 9.41 cents per share and total dividend of 17.72 cents per share (up 13.6% and 12.5% respectively). This result was largely driven by the outperformance in Telecommunications and Transport. The full year benefit of new Telecommunications contracts, such as nbn’s fibre upgrade works, Telstra’s Intercity fibre build, as well as the new Transurban contract in Transport have contributed to revenue growth of over 20% in both sectors.

“We see significant future growth opportunity across all four business sectors, underpinned by strong demand drivers and market trends. We are confident our strategy will continue to deliver service excellence for our clients and long-term value for shareholders,” said Dean.

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