Johns Lyng Group, a building services provider, has increased its earnings guidance for the current financial year. The company’s strong demand for post-disaster recovery services from insurance clients has contributed to this positive outlook.
The listed company anticipates that the positive earnings momentum will continue into the 2023/24 period.
The projected total revenue is expected to reach $1.25 billion, with earnings before interest, tax, depreciation, and amortization (EBITA) estimated at $115.9 million. The company’s earlier forecast, which was provided in February upon the release of its first-half results, anticipated revenue of $1.145 billion and EBITDA of $111.1 million.
According to an investor update from Johns Lyng, the company attributes the upgrade to the sustained high demand for their core Business-as-Usual services, as well as an escalation in catastrophe events throughout FY23, which is anticipated to persist into FY24 and beyond.
Australian CEO Nick Carnell also affirmed that the catastrophe business is experiencing ongoing growth.
In relation to these events, he emphasized that the scale and duration of the associated work are expanding. He further highlighted the significance of Johns Lyng’s capacity to cater to government and insurance clients, as well as their crucial role as a trusted partner in this industry, which is essential for their overall success.
Additionally, he expressed the company’s commitment to ongoing investments aimed at enhancing their capabilities in this sector.
During the first half, Johns Lyng’s Insurance Building and Restoration Services division contributed to 88% of the total revenue. The company has successfully secured contract renewals with prominent insurance providers such as QBE, Allianz, Comminsure, IAG, and RACQ.
These contract renewals ensure that Johns Lyng will continue its commendable work in conducting recovery operations for the clients of these insurance companies.
In addition, the company has entered into contracts with the governments of Victoria and New South Wales to offer services to communities impacted by the floods that occurred last year. This demonstrates the company’s commitment to assisting and supporting the affected areas in their recovery efforts.
Source : insurancenews.com.au
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