Tasmea (TEA) H2 2024 earnings summary

Executive summary

• Achieved strong growth in FY24 with pro forma revenue of $407m, up 10.8% year-over-year, and statutory revenue of $400m, up 25.0% year-over-year.

• Pro forma EBIT reached $54.8m, up 27.4% year-over-year and 1.5% above prospectus target; statutory EBIT was $46.4m, up 53.2% year-over-year.

• 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% year-over-year.

• Outperformed prospectus targets for both EBIT and NPAT on a pro forma basis.

• Fully franked full-year dividend of 6.5cps, up 100% from FY23.

Financial highlights

• Pro forma gross margin increased 11.3% to $116.8m; statutory gross margin rose 38.4% to $114.0m.

• Operating cash flow (before interest and tax) was $49.8m, with a 107.3% OCF/EBIT conversion rate.

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

Outlook and guidance

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

• Maintenance activity expected to remain stable despite softening project work; focus on integrating recent acquisitions.

• Outlook supported by positive trends in iron ore, copper, electrification, and infrastructure markets.

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