Acrow (ASX: $ACF) FY24 Financial Results

Acrow Limited (ASX: $ACF) has reported a 28% increase in group revenue to $215.3 million for the 12 months ended 30 June 2024. The company declared a 100% franked dividend of 3.0 cents per share for the period, to be paid on 29th November 2024 to holders on the Company's fully paid ordinary share register on 31st October 2024. Acrow also announced the availability of a Dividend Reinvestment Plan (DRP) for its shareholders, allowing them to reinvest part or all of their dividends into new Acrow Limited shares at a 2.5% discount to the Market Value. The company acquired MI Scaffold Pty Ltd and Benchmark Scaffolding & Edge Protection Pty Ltd during the reporting period, further expanding its portfolio of specialized industrial services and engineering solutions across Australia.

Executive Commentary on FY24 Performance

The Acrow group continued its strategy of growing scale in engineered systems and services, achieving a 28% increase in group revenue driven by robust trading performance and organic growth. The Industrial Services division contributed significantly to the total group revenue, accounting for 33% of the revenue. The acquisitions of MI Scaffold and Benchmark Scaffold further enhanced our recurring revenue and expanded our capabilities in the industrial, mining, and infrastructure sectors. Despite the increase in overhead costs, the growth in sales contribution resulted in a steady group margin of 62.1%. We are pleased with the underlying EBITDA growth of 40% to $74.6 million, reflecting the benefits associated with scaling operations. The increase in net debt to $68.6 million was primarily driven by the acquisitions and growth initiatives, and our gearing metrics remained stable and at comfortable levels compared to the previous year.

Summary of FY24 Results and Outlook

Acrow Limited (ASX: $ACF) reported a strong performance in FY24, with a 28% increase in group revenue driven by organic growth and the contributions from the acquired entities. The company's focus on expanding its industrial services division and engineered systems has resulted in enhanced recurring revenue and improved margins across all divisions. Despite the increase in net debt, the company's gearing metrics remained stable, indicating a comfortable financial position. The acquisitions of MI Scaffold and Benchmark Scaffolding & Edge Protection have strategically positioned Acrow to capitalize on the opportunities in the industrial, mining, and infrastructure sectors. Looking ahead, Acrow aims to continue its momentum in growing scale and further strengthening its position in the engineered systems and services market.