Building repairs company Johns Lyng Group has defended its growth strategy after the release of its annual results in August triggered a share price slump. 

“In response to this decline, we conducted a thorough analysis of feedback and a detailed review of our business performance over recent months,” chairman Peter Nash told the annual general meeting in Melbourne this morning.

“Following this period of reflection, we are confident we are on the right path. Our growth strategy remains focused on sustainable, defensive opportunities across our five pillars, which we are confident will yield positive results.”

Johns Lyng also again defended its strata operations after a Four Corners program in September raised concerns over opaque cross-ownership and remuneration within the sector.

The company’s strata management portfolio has grown to about 145,000 lots across more than 4800 schemes, making it Australia’s second-largest strata management provider.  

“This is a responsibility we take seriously,” CEO Australia Nick Carnell told the meeting. “In recent months, the strata industry has come under increased scrutiny from the media, tenants and regulators. I want to assure you that we are engaging proactively with these stakeholders to drive meaningful change within the sector.”  

Mr Carnell said the Bright & Duggan strata business operates to the highest standards, particularly around transparency.

“Importantly, its business model is not reliant on insurance commissions. This positions us well for any further regulation, and we will continue to lead on these critical issues,” he said.

Johns Lyng, which in September acquired an 87.5% stake in Queensland insurance building and restoration services provider Keystone Group, updated its full-year financial guidance.

It forecasts $1.221 billion in revenue and a 25.9% increase in business-as-usual revenue. Earnings before interest, tax, depreciation and amortisation are expected to reach $147.1 million, with a 16.3% increase in business-as-usual EBITDA.

Mr Nash told the meeting Johns Lyng entered this financial year in a strong position, with a solid pipeline of work and acquisitions that will deliver revenue synergies, while it is making good progress establishing its business in the US.