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Johns Lyng bucks trend with earnings upgrade

Building services provider Johns Lyng Group has lifted its earnings forecast by 10%, saying it has experienced unprecedented demand following six separate catastrophic events.

The group now expects earnings to come in at $39 million for the year to June 30, up 10% from earlier guidance and a rise of 68% from fiscal 2019. Revenue is now expected to jump 40% to $470 million this year.

Johns Lyng’s first-half earnings were boosted by work orders after last year’s Townsville floods and Sydney hailstorm, and the volume of work rose again following last summer’s bushfires and hailstorms.

“These businesses have recorded further consistent increases in registrations throughout the second half to date,” CEO Scott Didier said.

The earnings upgrade reflected the “recurring but unpredictable added bonus” of catastrophic events.

“We’ve seen an unprecedented number of job registrations as a result of these recent catastrophes and they are contributing a material positive impact on our performance,” Mr Didier said.

The core insurance building and restoration services businesses performed very strongly “despite the challenges presented by COVID-19".

The company counts major insurance companies among its customers, as well as local and state governments, body corporates and retail customers.