Johns Lyng Group has achieved better than expected earnings for the year to June 30, powered by its core Insurance Building and Restoration Services (IB&RS) division.

Group earnings before interest, tax, depreciation and amortisation (EBITA) gained 42.9% to $119.4 million, exceeding the business’s revised forecast of $115.9 million in June and net profit after tax advanced 64.3% to $62.8 million, the listed building services provider announced today.

Total sales revenue grew 43.2% to $1.28 billion from a year earlier, surpassing its upgraded guidance of $1.25 billion.

The rise in total sales was driven by IB&RS business as usual (BaU) revenue, which increased 32.2% to $775.3 million.

“Our IB&RS BaU business remains the bedrock of our financial performance and a 32.2% increase in revenue this year was incredibly pleasing given the additional growth opportunities that lie ahead,” Group CEO Scott Didier said.

Demand for Johns Lyng’s post-catastrophe recovery works also lifted total sales revenue. The business says catastrophe-related revenue more than doubled to $371.3 million from $164.8 million a year earlier.

“Johns Lyng achieved strong growth in our CAT activity,” Mr Didier said. “We are seeing the continuing trends of longer-tail recoveries, coupled with counterparties, especially governments, looking for relationships with service providers that are multi-project and multi-year in nature.”

He says the Johns Lyng business model “give us the best opportunity to win a large proportion of this significant and important work”.

During the 2022/23 year the IB&RS division secured a number of new contract wins and extensions across its “blue chip” client base and also entered the New Zealand market.

“These include new contract wins with Youi and Austbrokers, along with contract extensions with Suncorp, QBE, Allianz, Comminsure, IAG and RACQ.”

Johns Lyng says it has opened a number of new offices to support the growth of the IB&RS business including in Davenport, Shepparton, Moruya Heads, Noosa Heads and Auckland.

“Our entry into the New Zealand market during the year allowed us to assist communities affected by Cyclone Gabrielle, which impacted wide areas of the North Island resulting in severe flooding,” Johns Lyng said.

“Our emergency response has now evolved into a significant rebuild effort.”

As part of its New Zealand growth plan the business acquired an 80% equity interest in Christchurch-based Mainland Building Services, extending its footprint into the South Island.

For this financial year Johns Lyng is aiming for sales revenue of $1.176 billion and EBITDA of $128 million.

“Johns Lyng is well placed for another strong year in FY24, with the start of the first quarter maintaining the positive momentum of FY23,” the business says.