Johns Lyng Group's 1H24 financial performance and strategic outlook

Johns Lyng Group (ASX: $JLG) has reported a record 1H24 financial performance with a solid balance sheet and very strong work-in-hand. The group's revenue for 1H24 stood at A$112.3m, with a notable EBITDA margin of approximately 10%. The recent partnership with Allstate Insurance, one of the largest insurance companies in the US, is expected to contribute to the group's growth. Additionally, the group's strategic acquisitions, including Smoke Alarms Australia and Linkfire, have positioned Johns Lyng for a strong outlook in FY24.

Executive commentary on 1H24 performance and strategic initiatives

The strong 1H24 result underscores our 'Defensive Growth' investment thesis, positioning us for continued growth. Our partnership with Allstate Insurance and the recent acquisitions have expanded our service offerings and geographical reach, providing a strong platform for future growth. We remain committed to our organic growth strategy, focusing on geographical expansion, new client wins, and diversification into complementary adjacencies. The US market, in particular, is at an inflection point with the Allstate partnership and the launch of 'Customer Connect', our claims management platform. We are also actively evaluating additional strategic acquisitions to further enhance our market position and offerings.

Outlook for FY24 and corporate strategy

Johns Lyng Group's strong 1H24 financial performance, strategic partnerships, and acquisitions have set the stage for a robust outlook in FY24. The group's ambitions include organic growth through geographical expansion, new client wins, and diversification into complementary adjacencies. The US market, with the Allstate partnership and 'Customer Connect' launch, presents significant growth opportunities. The recent acquisitions of Smoke Alarms Australia and Linkfire have expanded the group's presence in the essential home services market. With a focus on recurring revenues and deep client relationships, Johns Lyng Group is well-positioned to capitalize on the significant domestic and international market opportunities across all strategic growth pillars. The group's strong balance sheet and ample liquidity provide the capacity to fund organic growth and pursue additional strategic acquisitions, further strengthening its competitive advantage.