Johns Lyng grows its profit by 84% and upgrades guidance due to increased restorative work, leaving shareholders very pleased
Nick Sundich, February 21, 2023
Johns Lyng Group (ASX:JLG) delivered the best 1HY23 result of the companies reporting this morning. The company has been one of the few beneficiaries of catastrophic weather events that have occurred in recent months.
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
Johns Lyng Group grows its profit by 84%
Johns Lyng Group recorded $635.6m in revenue, up 71% from 1HY22.
Revenue from the company’s Insurance Building and Restoration Services (IBRS) division increased by 62% to $374.8m, but revenue from Catastrophe work rose 179% to $186.1m. The latter was due to increased catastrophic weather events, particularly Hurricane Ian in the US.
The company’s Net Profit After Tax came in at $34.1m, up 84%, and its EPS was 9.68c, up 88%. There was also strong EBITDA growth, with the $59.4m result being 63% higher than 12 months.
Nonetheless, Johns Lyng Group only paid a dividend of 4.5c per share, which was only 47% of NPAT and a yield of only 1.4% on an annualised basis.
The company’s shares are up 12% today and up over 360% in the last five years.
Johns Lyng Group (ASX:JLG) share price chart, log scale (Source: TradingView)
Upgraded guidance
This result caused the company to update its guidance for FY23.
It is now expecting $1.15bn in revenue, up 15% from FY22 and an 11.2% upgrade from the original guidance, along with $111.1m in EBITDA, which would represent a 13% increase from FY22 and is a 5.5% upgrade from previous guidance.
Investors might argue that this result was a one-off but the company disagrees. CEO Scott Didier claimed that the value and duration of catastrophic events has been increasing – in other words, revenues from disasters flow over multiple periods.
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
No credit card needed and the trial expires automatically.
Blog Categories
Recent Posts
Tigers Realm Coal (ASX:TIG): Its making an awkward exit from Siberian coking coal, but what’s next?
Tigers Realm Coal (ASX:TIG) has been one of the few ASX stocks (if not the only ASX stock) with direct…
Is Australia still set for a soft landing in 2024?
Is Australia still set for a soft landing? For some months now, it was thought the answer was a firm…
Johns Lyng Group (ASX:JLG): One of a few ways to profit from climate change
Johns Lyng Group (ASX:JLG) is a restoration services company, repairing properties after damage by insured events, including weather and other…