Symal Group Limited – 1H FY25 Interim Results Summary
Company Website: https://symal.com.au/
Overall Report Tone
Symal Group Limited reported strong revenue growth but a significant decline in statutory earnings due to IPO-related adjustments and one-off items. The normalised earnings present a much stronger picture, with profitability up substantially. The company remains on track to meet its full-year forecasts, supported by a solid pipeline of work and recent contract wins.
Key Financial Results
| Metric | 1H FY25 | 1H FY24 | % Change |
|---|---|---|---|
| Revenue (Statutory) | $403.6M | $364.3M | +10.8% |
| Revenue (Normalised) | $416.7M | $371.3M | +12.2% |
| EBITDA (Statutory) | $33.9M | $46.3M | -26.8% |
| EBITDA (Normalised) | $48.7M | $37.6M | +29.6% |
| Net Profit (Statutory) | $6.99M | $18.8M | -62.8% |
| Net Profit (Normalised) | $19.6M | $11.4M | +72.3% |
| EPS (Basic) | $0.048 | $103,793.42* | Impacted by IPO restructure |
| Dividend Declared | No interim dividend declared | – | – |
EPS comparison is skewed due to share splits and IPO adjustments.
New Information in This Report
- IPO Completion: Symal listed on the ASX on 21 Nov 2024, raising $136M.
- Revenue & Profit Shift: Higher 1H FY25 revenue than expected, leading to a pull-forward of earnings from 2H.
- Strong Normalised Profit: Adjusting for IPO impacts and one-off items, net profit was up 72.3% YoY.
- Contract Wins: Work in hand increased to $1.37B as of Feb 2025 (up from $1.11B at Dec 2024).
- Improved Cash Position: Net cash of $32.6M, compared to a net debt position of $12.6M at June 2024.
Positive Surprises / Strengths
✅ Revenue growth ahead of plan – First-half revenue represents 43.4% of full-year target, ahead of initial 40% estimate.
✅ Strong Normalised EBITDA Growth – Adjusted EBITDA up 29.6% YoY.
✅ Work pipeline remains robust – Secured work increased to $1.37B, supporting future revenue.
✅ Strong operating cash flow – $52.2M in operating cash flow, 182% cash conversion.
Potential Concerns
⚠️ Statutory profit down significantly (-62.8%) – The headline number looks weak due to IPO adjustments.
⚠️ Higher finance costs (+42.5%) – Rising interest expenses could impact future profitability.
⚠️ Increased operating expenses (+16.3%) – Cost growth outpaced revenue growth in statutory results.
⚠️ No interim dividend – While expected, this could impact investor sentiment.
Results vs Market Expectations
📊 Revenue & normalised earnings exceeded expectations – First-half performance is tracking ahead of initial FY25 guidance.
📉 Statutory profit weakness was expected – Market likely anticipated IPO-related adjustments.
📊 Cash position stronger than expected – Higher cash reserves than IPO estimates.
📉 No dividend may disappoint some investors – Could pressure short-term sentiment.
Outlook & Guidance
🔹 FY25 targets reaffirmed – On track for $961.1M revenue and $102.3M EBITDA.
🔹 Work pipeline remains strong – 91% of FY25 revenue secured.
🔹 More contract wins expected – Recent deals (e.g., Gawara Baya Windfarm) support growth.
🔹 Focus on acquisitions – Evaluating strategic M&A to expand services.
Market Positioning
🏗️ Well-diversified across infrastructure sectors – Public & private projects in roads, ports, energy, defence, and recycling.
📈 Growth supported by government spending – Strong infrastructure investment outlook.
🛠️ Vertical integration advantage – Equipment, contracting, and materials businesses create synergies.
🔄 Increased focus on sustainability & recycling – Expanding services in waste recovery and remediation.
Share Price Performance (Pre & Post-Report)
📅 Trading commenced on ASX (Nov 2024) – Limited history for trend analysis.
📊 IPO at $1.85 per share – Initial valuation set based on FY25 projections.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Quick Take: H1FY25 ASX:SYL