Building services provider Johns Lyng today reported a sharp rise in first-half earnings, boosted by the strong pipeline of post-catastrophe recovery work stemming from last year’s Townsville floods and Sydney hailstorm.

This summer’s bushfires and hailstorms have led to increased job volumes, placing the business in position to meet its upgraded full-year sales target of $420 million as announced last month.

Overall earnings before interest, taxes, depreciation and amortisation grew 78% to $20 million in the December half, and after-tax net profit was 1.2% higher at $7.9 million. Group revenue increased 53% to $233.7 million.

The Insurance Building and Restoration Services arm grew its revenue by 55.9% to $183.2 million as catastrophe-linked income more than doubled to $38.2 million and business-as-usual (BAU) sales went up 41.5% to $145 million.

“We’ve recorded increasingly high job volumes which have built momentum that has carried into the second half,” CEO Scott Didier said. “We expect this to again be a big driver of full-year performance.”

“Non-forecast cat events have driven an additional bonus to this BAU activity, and work volumes from disasters in Townsville and Sydney last year were significant contributors in the first-half of [this financial year].

“We are currently in the midst of responding to six different non-forecast cat events, including the tragic bushfires experienced this summer, and several recent storms in both NSW and Victoria.

“These have led to an unprecedented record number of registrations and job volumes and we expect these to be reflected in performance in the second half and into [the next financial year].”

Strategic acquisitions made in the past few months have also provided the business with extra earnings momentum.

Buying Sydney-based strata and facilities management business Bright & Duggan proved to be a “game changer” for the group, as was the investment in Brisbane-based Capitol Strata Management, Mr Didier said.

“We knew that strata market consolidation opportunities would arise and we have already taken advantage through the acquisition of Capitol Strata,” he said. “The acquisitions have begun to contribute to group performance and we expect their impact to grow into the second half and beyond”.