Ventia (ASX:VNT) Announces Strong FY24 Financial Results and Major Contract Wins
Financial Performance
Ventia reported a total revenue of $6,105.5 million for FY24, representing a 7.6% increase compared to FY23. EBITDA reached $499.3 million, marking a 7.3% growth. NET Profit After Tax and Amortisation (NPATA) rose by 12.8% to $227.9 million. The company maintained a robust cash conversion ratio of 91.4%, up 6.5 percentage points since FY21. Ventia’s work in hand increased to $19.4 billion, a 6.7% rise from FY23.
Dividends and Share Buyback
Ventia declared a final dividend of 10.63 cents per share (cps) for FY24, a 12.8% increase on the previous year. Additionally, the company announced an on-market share buyback of up to $100 million, aiming to return capital to investors and enhance shareholder returns.
Major Contracts
Ventia secured significant contracts in growth markets, including a five-year agreement with Telstra valued at approximately $2 billion. Other notable contracts include Western Power Distribution ($178 million), Seqwater ($220 million), and Homes NSW ($570 million). These acquisitions have contributed to Ventia’s strong work in hand pipeline, supporting future growth.
Safety Achievements
Safety remains Ventia’s highest critical risk, with telematics and bespoke training programs contributing to a 65% reduction in vehicle incidents since 2021. Infringements decreased by 29% in FY24, and high-potential vehicle events were eliminated, achieving a 100% reduction.
Outlook
Ventia forecasts NPATA growth of 7-10% for FY25, excluding the positive impact of the Toowoomba transaction. The company aims to realise sustainable growth with a renewal rate of 91.9% and work in hand exceeding $20 billion.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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