Ventia Services Group Limited Analysis

Overview

Ventia is a leading essential infrastructure services provider in Australia and New Zealand and is structured across four Sectors:

• Defence & Social Infrastructure (D&SI);
• Infrastructure Services (IS);
• Telecommunications; and
• Transport.

Ventia has extensive capabilities across the full asset lifecycle including Operations and Maintenance (O&M), Facilities Management (FM), Minor Capital Works (MCW), Environmental Services (ES) and other solutions.

Ventia’s purpose is ‘making infrastructure work for our communities’ and its number-one brand promise is ‘safety and health above all else’. Ventia’s strategy is to ‘Redefine Service Excellence’, by being client-focused, innovative and sustainable.

Performance

The following information was extracted from Ventia Services Group Limited's full year results, released 19 February 2025:

Ventia Services Group Limited (Ventia) today announced its full-year result for the period ending 31 December 2024, with NPATA of $227.9m exceeding the top end of upgraded guidance. The company provides FY25 guidance for underlying NPATA growth of 7-10% compared to FY24 Statutory NPATA.

Ventia Managing Director and Group CEO Dean Banks said: "The FY24 result highlighted continued demand for essential services. Ventia's strategy to redefine service excellence has strengthened existing customer relationships while securing new ones, illustrated by our work in hand growth of 6.7% to $19.4 billion. For shareholders we delivered a total dividend of 19.98 cents per share reflecting strong operational performance.

"Today we announce our intention to conduct an on-market buyback of up to $100 million of Ventia’s ordinary shares, demonstrating our robust capital position while maintaining capacity to pursue growth opportunities.

"Regarding the ACCC's notification of civil proceedings in December, Ventia will defend the allegations of competition law contraventions. Based on current information, we have not identified any misconduct. We remain committed to ethical business practices and high-quality service delivery," Mr Banks said.

Key metrics:

-FY25 Guidance – underlying NPATA growth of 7-10% on FY24

-On-market buyback of up to $100 million

-Final Dividend of 10.63 cents per share, franked at 80%

-TRIFR1 up 0.6%

-Revenue of $6.1 billion, up 7.6%

-EBITDA of $499.3 million, up 7.3% with margin of 8.2%

-NPATA $227.9 million, up 12.8%

-Work in Hand $19.4 billion, up 6.7%

-Operating cash flow conversion of 91.4%

-Earnings per share growth of 16.0%