Building services provider Johns Lyng Group has raised its earnings guidance for this financial year, buoyed in part by strong demand for its post-disaster recovery services from insurance clients. 

The listed company expects the earnings momentum to extend into 2023/24. 

Overall revenue is set to reach $1.25 billion and earnings before interest, tax, depreciation and amortisation (EBITA) $115.9 million. The listed company’s previous guidance, made in February when its first-half results were announced, forecasted revenue of $1.145 billion and EBITDA of $111.1 million. 

“The upgrade is driven by ongoing strong demand for the group’s core Business-as-Usual services, and an increase in catastrophe activity during FY23 which is expected to continue into FY24 and beyond,” Johns Lyng said in an investor update. 

Australian CEO Nick Carnell says the catastrophe business continues to grow. 

“We note that the size and duration of the work associated with these events is increasing,” he said. “Johns Lyng’s ability to service our government and insurance clients and be a trusted partner in this sector is critical to our success. We will continue to invest to grow our capability in this sector.” 

Johns Lyng’s Insurance Building and Restoration Services division accounted for 88% of first-half revenue. It has secured contract renewals with QBE, Allianz, Comminsure, IAG and RACQ to continue carrying out recovery works for their clients. 

The business has also been contracted by Victoria and NSW governments to provide services to flood-affected communities after last year’s catastrophes.