ACF.Acrow Formwork and Construction Services LTd

[DarkHorse]

ACROW REAFFIRMS GUIDANCE FOR FY24... revenue guidance remains in the range of $215m -$225m and EBITDA in the range of $73m - $76m, representing a 31% and 40% increase on the previous corresponding period.

For the 10 months to April 2024, hire contract wins continued to expand, up 13% on the PCP and the hire revenue pipeline has grown to $150m, up 27% on the same time last year. Commenting on the update, Steven Boland, CEO said: ”It is very pleasing to see the business units continuing to trade strongly and in line with expectations. We could not be happier with the results sofar and the prospects of the MI Scaffold business within our Industrial Services division. It is an excellent business and is very well managed.

Whilst it has only been two months since we acquiredBenchmark Scaffolding, I am also pleased to say that it is trading in line with our expectations at thetime of acquisition. Over the past few months, we have secured new major medium to long term contracts across the Industrial division at the Ampol Fuel Refinery in Brisbane, Sun Metals ZincRefinery in Townsville, Kidston Hydro Project in North Queensland, and Abbott Point Coal Terminal inthe Bowen Basin.

We will continue to aggressively pursue growth opportunities nationally in theIndustrial market.”“One of the other major pillars of our future growth strategy is our internal Product Developmentfocus. I am pleased to advise that our most recent new product, Acrowdeck, has been extremely well received, especially in the important NSW market. We will be fast tracking the future production of thisproduct to capitalise on the opportunities that are now presenting.”

“Likewise, promising market activity and recent contract success for our Jacking Systems business willsee us moving at a more rapid rate with acquisition of product to cater for the expected growth.”“With the promising developments within our Industrial Services division and strong demand for our new product offerings, our capital investment profile is increasingly pivoting towards near-termrequirements. This all points to another expected year of strong growth as we start to look forward toFY25.”


Excellent prospects for a company currently available on a PE of 11X, on the back of a track record of several years of exceptional growth in both top line sales and bottom line earnings.