SRG LTD 20 April 2017
ASX ANNOUNCEMENT SRG LIMITED NEWSLETTERSRG Limited (ASX:SRG), a leading complex services company, is pleased to share its first newsletter for 2017.
Highlights:
New drilling contract in Queensland
Additional works for Evolution Mining
Keepit Dam Upgrade Project commences
Bass Point project complete
Building division secures over $10M of work
Palais Theatre refurbishment complete
SRG receives two ACRA awards for excellence
Launch of the new SureLok Basement Retention System
International operations gaining momentum
SRG Managing Director, David Macgeorge said, "I am pleased to share SRG's first newsletter for 2017, which showcases some of the recent projects that demonstrate SRG's vision of 'making the complex simple' for our customers."
ENDS
Issued by SRG Limited ABN 57 006 413 574
SRG Limited are an Australian complex services company. Our vision is to make the complex simple for our customers and our mission is to be a leading provider of complex services to the construction and mining industry worldwide.
Founded in Victoria in 1961, the Company commenced trading as BBR Australia Pty Ltd with the first project undertaken to supply and install rock anchors for the Snowy Mountains scheme. Listed in 1987 on the ASX as Structural Systems Limited, the organisation has grown from a small privately owned specialist post-tensioning company to a diverse international contractor in building, civil, mining, products and services. SRG has offices throughout Australia as well as in the Middle East and Hong Kong. In November 2014, Structural Systems Limited became SRG Limited.
SRG's ticker code has recently changed from 'STS' to 'SRG'.
NEWSMessage from the Managing Director.
It is my pleasure to present "What's Making News", SRG's first newsletter for 2017. As an important stakeholder in SRG, I hope you enjoy this newsletter and find the update on our business informative.
In this edition, we showcase some of the recent projects we are working on that demonstrate SRG's vision of "making the complex simple" for our customers. We also introduce a new product, the SureLok basement retention system
an innovation which provides a
welcome solution to a longstanding building industry issue - connecting post-tensioned slabs to building walls.
In late February, SRG announced its half year financial result for the period ending 31 December 2016. The half year ended strongly, with the company reporting that Net Profit Before Tax (NPBT) was up 143% on the prior corresponding period (pcp) to $7.3m,
together with a fully franked dividend of 3c, which was up 50%, pcp.
The NPBT number for the half year of
$7.3m included profit from the sale of our corporate property in Melbourne as well as some of the costs to support our international expansion into Hong Kong (see page 7), the Middle East and in our assessment of acquisitions and tender opportunities in other targeted geographies.
We have called out some of the top level results from the half year on this page, but for those interested in our financial progress, I would recommend reviewing SRG's results presentation from the first half of
FY17, which summarises the continued improvements that were made to
the business in the period. Further information exists via recent analyst reports by Hartleys and Patersons,
which are available through the Investor Relations section of our website at srglimited.com.au.
The improved first half reporting is a result of our continued focus on the Development Phase of SRG's strategy, which is centred around growth, expansion, acquisitions and disciplined execution. We have a clearly defined vision for each of our business streams and expect strong execution for both customers and investors during the calendar year.
As always, thanks for your ongoing support. I look forward to keeping you up to date as we continue to make progress.
1H FY17 HIGHLIGHTS
Revenue up 45% on 1H FY16
NPBT up 143% on 1H FY16
128% increase on 1H FY16 in EPS to 7.3cps
Cash in hand $25.9M
No net debt
50% increase in interim dividend to 3c
50% increase in FY17 share price
David Macgeorge
NEWS HIGHLIGHTS
New drilling contract in Queensland
Additional works for Evolution Mining
Keepit Dam Upgrade Project commences
Bass Point project complete
Building Division secures over $10M of work
Palais Theatre refurbishment complete
SRG receives two ACRA awards for excllence
SureLok Basement Retention System
International operations gaining momentum
OUR PROJECTS
MINING
SRG AWARDED NEW DRILLING CONTRACT IN QUEENSLAND
SRG has recently secured a new drilling contract at Peabody's Millennium Mine located 160kms
south west of Mackay in Queensland.
The mine is an open cut coal mine which produces coking and pulverised coal injection (PCI) coal.
This is the first coal project SRG has been involved with in some time and will see two of our big DR460 rigs mobilised to site, ready to commence works. Both rigs have now been mobilised to site and drilling commenced at the beginning of March. ///
SRG PERFORMS ADDITIONAL WORKS FOR EVOLUTION MININGSRG has recently completed a deep hole Reverse Circulation program for Evolution Mining at the Cowal Gold Mine.
The Cowal Gold Mine, owned and operated by Evolution Mining is located 350 kilometres west of Sydney in West Wyalong, NSW. SRG has been performing drilling works on this mine since 2007.
In addition to our existing drilling contract, SRG has recently assisted Evolution with a Deep Hole Reverse Circulation (RC) program to explore the future resources of the Cowal E42 open pit ore deposit.
The program ran for one month and was very successful, enabling
SRG to showcase its ability to provide solutions for Evolution and also expand the capability we can offer our current and future clients. The results have provided Evolution with an insight into the profitability and life expectancy of the Cowal mine and further strengthened our relationship.
During this program, SRG drilled a total of 16 holes, ranging in depth from 220m - 300m. These are the deepest holes the Company has drilled to date. ///
OUR PROJECTS
CIVIL
KEEPIT DAM UPGRADE PROJECT
The Civil team recently secured a
$24.4m contract with WaterNSW for specialist dam anchoring works for the Keepit Dam Upgrade Project, located near Tamworth in NSW.
Keepit Dam is situated on the Namoi River, 30 kilometres upstream of Gunnedah on the north west slopes of the NSW Northern Tablelands. The dam has a capacity of 425,000 megalitres, making it nearly as large as Sydney Harbour.
SRG is the head contractor on the project and will complete all works required for the installation of 91 strand post-tensioned
cable anchors in the concrete section of the existing dam as well as significant civil works associated with the project. The site works will begin at the end of March 2017 and are expected to be completed by June 2019.
SRG has a long history of successfully delivering dam strengthening projects with the installation of world record capacity ground anchors and this will be the fifth dam project to use the world record capacity 91 strand anchors.
WHAT IS SLIPFORM?
The slipform process involves the continuous upward movement
of formwork by means of jack rods and hydraulic jacks. The slipform technique is a rapid and economical construction method which can achieve considerable cost savings when compared with the cost of conventional formwork.
BASS POINT PROJECT COMPLETESRG has recently completed the $8.4M Bass Point Quarry project.
The project is located in an existing working quarry at Shellharbour near Wollongong in NSW, two hours south of Sydney.
SRG performed slipform construction works on six silos. The silos are
each 15.6m high with an internal diameter of 15m and will hold quarry aggregates and manufactured sand. The site team worked around the clock during each slipform operation to reach the full height of 15.6m over six back-to-back shifts.
Upon completion, the Bass Point project will see the quarry operator maximise the processing of basalt for the 25 year granted lifeline of the quarry.
SRG's expertise with slipform and detailed reinforced concrete works was integral to securing this now complete project. ///
This significant project sees our Civil and Mining teams collaborating to deliver an end to end solution to WaterNSW. ///
SRG Limited published this content on 20 April 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 April 2017 00:15:02 UTC.
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