Building services provider Johns Lyng Group’s core insurance arm achieved strong earnings growth in the last financial year, driving a 48% jump in overall sales revenue to $495.1 million.

The company’s Insurance Building and Restoration Services arm, which makes up 80.1% of revenue contribution, brought in $396.7 million for the Melbourne-based business in the year to June 30. This represents a 52% increase from a year earlier.

Earnings before interest, tax, depreciation, taxes, depreciation and amortisation (EBITDA) surged 76.6% to $41 million.

At the group level, overall EBITDA rose 76.6% to $41 million and net profit after-tax went up 20.4% to $15.9 million.

The other key divisions, commercial building services and commercial construction, recorded revenues of $54.1 million and $43.6 million respectively.

“The financial performance was extremely pleasing for the group, particularly as it was driven by an unprecedented level of demand for our services,” CEO Scott Didier said.

“Our core Insurance Building and Restoration Services business has been the pillar of our group for many years and delivered another year of outstanding growth.”

Johns Lyng says the pandemic has had “minute” impact on the division, describing the services provided as “essential” and a “non-discretionary spend” for insured customers.

It says access to properties have not been affected despite the recent tough restrictions on public activity. In Melbourne, where a stage four lockdown is in force, emergency works are still allowed to continue.

“The fact our job numbers grew during the COVID-19 pandemic is a great reflection of the strength of our network, the relationships we have built with key clients, and our commitment to superior customer outcomes,” Mr Didier said.

“It’s also another clear indicator that our core service offering is insulated from economic factors which impact the broader market.”

He says organic growth will be driven in part by its growing presence in the strata market, which includes taking a key stake in Sydney-based strata and property management business Bright & Duggan in August last year.

Mr Didier says revenue for catastrophe-related works is an “added bonus” and the business is still in the process of responding to six natural disaster events across the country. Income earned from the events will be reflected in this current financial year.

Revenue from “business as usual” activities in the financial year grew 43.2% to $307.7 million, and catastrophe works revenue increased 92.7% to $89 million.

Johns Lyng is projecting sales revenue of $485.3 million this financial year, with “business as usual” income tipped to rise 14.5% to $465 million.

It expects EBITDA of $41.2 million, predicting the BaU component will increase 22.9% to $39.1 million.