Ventia Services Group shares fall on 'slightly subdued' first half
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The news: Shares in Ventia Services Group tumbled on the ASX as the infrastructure services provider reported "slightly subdued" work in hand during the first half of the year.
The numbers: Ventia shares lowered 4.3% to $4.28 by 1:50pm AEST.
Reporting its half-year results, the company upgraded its full-year guidance range for NPATA growth to 10% to 12% compared to FY23.
However, the company saw a 1.5% decline in work in hand compared to the previous corresponding period, as its infrastructure services business was hit by spending reductions from key resources and industrial clients.
Elsewhere, half-year NPATA was up 12.5% year on year to $106.7 million. Revenue grew 10.6% to $3.1 billion while EBITDA rose 9.2% to $245.8 million
The group declared an interim dividend of 9.35 cents per share, up 12.5% compared to the same time last year.
The context: Ventia, which delivers infrastructure services, facilities management and engineering solutions across Australia and New Zealand, said the result across the first half was underpinned by continued strong performance of its telecommunications business, and increased revenue growth from its defence and social infrastructure (D&SI) and transport businesses.
These were largely supported by the impact of new contracts and higher volumes of work on existing ones.
The company noted that work in hand was "slightly subdued" across the half, primarily due to delays of some large government procurement processes and the seasonality of work winning, which is typically lower in the first half.
It said the operating environment continues to be supported by a range of market tailwinds, however, including a growing asset base, population growth, digital innovation and the energy transition.
The source: ASX announcement
