Engineering services group DRA Global has improved interim earnings on the back of an 11% year-on-year drop in FY23 first-half revenue to A$424 million, turning its FY22 H1 net loss of $16.9 million into NPAT of A$19.4 million in the half just ended.
DRA said it continued to face skilled labour shortages and inflationary pressures on its cost base in key markets in the second half of the year.
“The outlook for financial performance in the current half remains positive and broadly similar to H1 FY23,” the company said this week, citing an estimated A$4 billion of opportunities in its pipeline.
“Through the second half of FY23, the group’s capital allocation framework continues to prioritise strengthening the balance sheet, retaining and investing in our people and sustaining base working capital.”
DRA said it increased its net cash position by $29.4m to $88.5m in the first half of 2023.
CEO James Smith said the company achieved “further stability in underlying operating performance across our business units, driving sustained momentum in group profitability”.
“The hard work we have done has enabled a substantial improvement in liquidity and gearing, in line with our short-term capital allocation priorities,” he said.
ASX-listed DRA Global’s share price closed nearly 13% higher on Thursday at $1.54, capitalising the company at $84.4 million.