Shares for NRW Holdings Ltd [ASX:NWH] are up over 27% today. At time of writing, shares were trading at $2.11.
NRW Holdings is an Australian company that provides services to the resource and infrastructure sectors. With a workforce of around 7,000, the company has operations in Western Australia, South Australia, New South Wales, Queensland and Victoria.
What’s moving NRW Holdings shares up today?
The company released a trading and dividend update.
The company posted a record revenue of $1.6 billion in 10 months to April, and confirmed they’re on track to meet their $2 billion revenue guidance despite the COVID-19 pandemic. They had also reduced their net debt to $115 million by the end of April.
According to the release, the company has implemented several processes to their operations to minimise risks from the outbreak. NRW confirmed their supply chains haven’t suffered any impact, and the same goes for their planned activities in their divisions.
After deferring their interim dividend payment in March, the company announced they will be bringing the payment forward, naming the strong performance of the business during the pandemic as the reason. The company will pay 2.5 cents per share on 9 June 2020.
NRW’s Chief Executive Officer and Managing Director Jules Pemberton said:
‘The award by Newmont to RCRMT provides an opportunity to bring both RCRMT and DIAB Engineering (acquired as part of the BGC Contracting transaction), together to deliver this important project. The ability to deliver this work from our regional facilities, in Bunbury, Geraldton and our Welshpool facility, to a major Australian project reflects the growing capability of NRW in the Australian manufacturing sector to provide specialised capital equipment for mining clients.
‘Bidding activity is high and following the BGC acquisition the pipeline continues to improve given the likely acceleration of public infrastructure projects. NRW is very well placed to address a growing list of opportunities through both its Golding business on the east coast and the significantly enhanced construction business in the west.’
What could happen next?
The company looks to be in a good position with increasing revenues and a large percentage of its income coming from mining and infrastructure — sectors that haven’t suffered many disruptions so far through the pandemic.
If you are interested in more dividend plays, check out editor Greg Canavan’s free report ‘Five Dividend Stocks Set to Thrive in the Post-Pandemic Era’.