SRG GLOBAL LIMITED — Annual Report 2021

Aug 23, 2021

24 August 2021

Advance Notice: Full Year Results Investor Briefing

SRG Global Ltd (ASX: SRG) advises that David Macgeorge (Managing Director) and Roger Lee (Chief Financial Officer) will host an investor briefing in relation to its full year results for the 2021 financial year, the details of which are set out below:

Date Today, 24 August 2021 Time 09.00am WST / 11.00am AEST Duration Approximately 45 minutes Access link https://services.choruscall.com.au/webcast/srgglobal-210824.html

The Company will make the investor briefing available on its website (srgglobal.com.au) shortly after the conclusion of the briefing.

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24 August 2021

SRG Global delivers increased profit, cash and dividend, forecasts strong growth in FY22

SRG Global Limited (‘SRG Global’ or ‘the Company’) (ASX: SRG), an engineering-led global specialist asset services, mining services and construction group, has delivered its Full Year Financial Results for the twelve months ended 30 June 2021 (‘FY21’).

Highlights

• Revenue Up 4% to $570m (from FY20)

• EBITDA Up 61% to $47.1m (from FY20)

• EBIT(A) Up 151% to $25.1m (from FY20)

• Strong operating cashflow (FY21 Net Cash of $12.2M from FY20 Net Debt of $8.4m)

• Well-funded for Growth - available funds of $88.2m + undrawn $27.7m equipment finance facility

• Final Fully Franked Dividend Doubled to 1 cent per share (total FY21 dividend of 2 cps)

• Record $1b Work in Hand, Up 41% (from 30 June 2020)

• Strong opportunity pipeline of $6b in diverse sectors and geographies

• Two Thirds Annuity Earnings Profile in FY21 and beyond

• Long term Strategy on track and well positioned for long term sustainable growth

• FY22 EBITDA expected to be ~15% higher than FY21 EBITDA result

The FY21 results demonstrate the continued execution of the SRG Global strategy. The significant level of new contract wins and the record work in hand of $1b is underpinned by demand for the Company’s engineering led, end-to-end solutions, across the asset services, mining and construction sectors.

The Company is well positioned for long term sustainable growth with two thirds annuity-style earnings and positive exposure to a diverse range of sectors and geographies across the asset services, industrial and mining sectors and government stimulus programs in the infrastructure and construction sectors.

SRG Global has significantly strengthened its financial position over the past twelve months, moving from net debt of $8.4m to a net cash position of $12.2m. It has also improved its liquidity to $88.2m of available funds, plus an additional undrawn $27.7m of equipment finance facility, with the Company well-placed to fund future growth.

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SRG Global Managing Director, David Macgeorge said, “SRG Global continues to take significant steps forward in the execution of our strategy. We have delivered a strong result in FY21 underpinned by new contract wins, strong operating cashflows and continued margin improvement through delivering for our blue-chip client base. The Company has experienced minimal financial impact of labour and COVID-19 challenges in FY21 due to the specialist nature of our business and the diversity of our service offering, the sectors in which we operate and our geographic spread.

“I am particularly pleased that we have continued to transition the business towards annuity earnings whilst winning a number of new term contracts in FY21. We have also managed the operational startup and contract execution exceptionally well throughout this period.

“The Company has record Work in Hand of $1b and is well positioned for long term sustainable growth with two thirds annuity-style earnings and positive exposure to broader macro-economic growth drivers across the asset services, industrial and mining sectors and government stimulus programs in the infrastructure and construction sectors.

“The Company is well funded to continue to drive further growth and expects FY22 EBITDA to be circa 15% higher than the FY21 EBITDA performance.

“The strong result means SRG Global will pay shareholders a final fully franked dividend of 1c per share, bringing the total FY21 dividend to 2 cents per share which is double the previous year.”

Business Overview

During FY21, SRG Global recorded revenue of $570m and EBITDA of $47.1m. In the same period the Company significantly improved its cash position from net debt of $8.4m as at 30 June 2020 to net cash of $12.2m. This was achieved despite investing in working capital to support the commencement of more than $750m of contract wins announced during the financial year.

Table 1: FY21 Segment Results ($m)

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Table 2: FY21 Cashflow

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Table 3: Strong Financial Position For Growth

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Record Work in Hand

As at 30 June 2021, the Company had Work in Hand in excess of $1b, an increase of 41.5% since 30 June 2020 and a record for SRG Global. Of that work in hand figure, approximately two thirds falls into the annuity / recurring earnings category, which is in line with the Company’s strategy.

SRG Global has a $6b pipeline of opportunities with positive exposure to Government-backed infrastructure investment, high quality commodities, diverse industries and a blue chip client base.

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Operating Segment Outlook

• Asset Services delivering step change growth in diverse sectors with blue chip clients

• Mining Services operating in high demand, high quality growth commodities

• Construction positively linked to Government Infrastructure stimulus programs

• International focus on Specialist Civil Engineering opportunities – Dams / Bridges / Tanks

Business Outlook

• FY22 EBITDA expected to be ~15% higher than FY21 EBITDA result

• Record Work in Hand of $1b with an Opportunity Pipeline of $ 6b

• Strong liquidity / balance sheet position to support growth working capital requirements

• Earnings profile of two thirds annuity earnings in FY22 and beyond

• Continued execution of a clear strategy and well positioned for long term sustainable growth

Final Dividend

The Board of Directors has declared a final dividend of 1 cent per share, fully franked which brings the total FY21 dividend to 2 cents per share. The record date of the dividend is 9 September 2021 with a payment date of 21 October 2021.

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Investor Contact

SRG Global Judson Lorkin (08) 9267 5400

About SRG Global

SRG Global is an engineering-led global specialist asset services, mining services and construction group operating across the entire asset lifecycle of engineer, construct and sustain. The Company operates three segments of Asset Services, Mining Services and Construction. For more information about the variety of services offered by SRG Global, click here.

This announcement was authorised for release to ASX by the Managing Director.

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