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Johns Lyng flags bigger catastrophe boost

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Recovery work following the Sydney hailstorm and Townsville flooding will provide a bigger revenue increase than initially expected, Johns Lyng Group says.

The building services provider has raised its revenue growth estimate for the financial year to 7.5%, up from a 4% forecast in February.

“We expected an uplift in the second half from work in Townsville, which is reflected in this forecast earnings upgrade,” CEO Scott Didier says in an investor update today. “These non-forecast events are the bonus to our core work, and so this result is especially pleasing.

“Importantly, we’re pleased to have a central role in helping the people of Townsville and central NSW recover from these disasters.”

Johns Lyng net profit in the half to December 31 grew 14.3% to $7.9 million, and total sales increased 3.3% to $152.6 million.