Johns Lyng Group says it performed strongly in 2023-24, supported by its core insurance building and restoration services division.

Group net profit after tax improved to $63.3 million from $62.8 million the previous year, and earnings before interest, tax, depreciation and amortisation (EBITDA) rose 8.5% to $129.6 million, the business announced today.

Insurance building and restoration services reported a record business-as-usual result, with revenue up 9% to $845.3 million and EBITDA surging 20.2% to $111.2 million. The unit accounts for nearly 91% of group revenue, which came in at $1.05 billion.

“The division’s record business-as-usual performance reflects the depth of the group’s relationships with its blue-chip client base,” Johns Lyng said.

The insurance building and restoration division extended contracts with Hollard, Suncorp, CHU and QBE during the year and had new contract wins, including with New Zealand’s Tower Insurance, SafetyCulture Care, RAA, Hutch and large American insurer AllState.

Johns Lyng says being appointed to AllState’s emergency response and mitigation panel for the provision of make-safe and water mitigation services will add to its growing US operations.

Australian chief executive Nick Carnell says the local operation delivered a strong result.

“Our [insurance building and restoration division business-as-usual] business is the cornerstone of the group and a key driver of our financial performance,” he said. “We are pleased to have achieved another record financial performance, underpinned by organic growth stemming from our reputation as a trusted partner to our insurance counterparties.”

Johns Lyng says the division’s results were supplemented by post-catastrophe work, which contributed $205.6 million in revenue during the year. The previous year, catastrophe recovery and rebuilding work brought in revenue of $371.3 million.

“While we note that [catastrophe] revenue was down on FY23, [that] year was a record, with several significant natural disasters impacting Australia,” Mr Carnell said. “We continue to assist many of these communities to this day, rebuilding not just infrastructure but local economies and ecosystems through our best-in-class approach to disaster recovery.”

Johns Lyng says the business is “well placed” for another strong year, with the first quarter of 2024-25 showing positive momentum.

“The group has a solid [business-as-usual] job registration pipeline … With several [catastrophe] contracts continuing into FY25, the group expects strong revenues from cat-related activity.”

From Insurance News magazine: Seven years on from the Grenfell fire disaster, how is the race to remove dangerous cladding from Australian buildings progressing?