19 Aug - 10 min read

DRA Global Limited - Financial Results for the half year ended 30 June 2021

DRA Global Limited - Financial Results for the half year ended 30 June 2021

                                                

DRA Global Limited
(Incorporated in Australia under the Corporations Act 2001 (Cth))
ACN 622 581 935
ASX / JSE Share Code: DRA
ISIN: AU0000155814
("DRA" or "the Company")
JSE Sponsor: Pallidus Capital Proprietary Limited                                                                                                                                    19 August 2021


DRA GLOBAL H1 CY2021 FINANCIAL RESULTS

Highlights
• Revenue of A$569.3 million, up 32% from prior corresponding period (pcp)
• Underlying EBITA of A$32.5 million, up 30% pcp
• Earnings per share (EPS) up 44% pcp, at 22.88 cents per share (CPS)
• NAV per share up 12% from 31 December 2020, to $4.11 per share
• ROE of 14.8%, up 60% pcp
• Cash of A$155.5 million, following A$49.9 million pre-IPO share buy-back payment
• 11 million man-hours managed for the period, TRIFR and LTIFR both improved
• 90% of forecast CY2021 revenue secured, on track to achieve forecast EBITA of A$56.9 million
  (prospectus)
• On-market buy-back program initiated


DRA Global Limited (ASX / JSE: DRA) (DRA or the Company) reports its financial results for the first half of
2021 calendar year (H1 CY2021) (i), the Company’s first since listing on the ASX and JSE.

DRA has reported underlying ii Earnings Before Interest Taxation and Amortisation (EBITA) of A$32.5 million
and underlying(ii) Net Profit After Tax and Amortisation (NPATA) of A$23.0 million for the first half, from 
revenue for the period of A$569.3 million.

DRA had cash reserves of A$155.5 million at the end of the half, no material debt and access to more than
A$50.0 million of borrowing facilities, providing capacity for growth.

DRA Managing Director and CEO, Andrew Naudé, said: “We are pleased to be presenting our first set of
financial results since listing on the Australian Securities and Johannesburg Stock Exchanges on 9 July 2021.
“DRA listed to enhance the Company’s platform for further strategic growth, which has seen the business and
global footprint grow significantly over the last five years.

“The profile of our business has also shifted over that period, with 57% of the A$621 million of new work
secured in H1 CY2021 coming from the Australia, Asia Pacific and Americas (APAC/AMER) region, and the
balance from our longer established Europe, Middle East and Africa (EMEA) region.

“As we look ahead, we will continue to execute our organic growth strategy and, where appropriate, consider
targeted M&A to maximise value for our shareholders.”

Financial results
                                                                 H1                    H1           Change
 Description                              Unit                                                         (%)
                                                             CY2021                CY2020
 Revenue                                  A$'M                569.3                 432.2             32%
 EBITA                                    A$'M                 29.1                  25.5             14%
 EBIT                                     A$'M                 26.1                  20.7             26%
 NPAT                                     A$'M                 16.6                  14.3             16%


 Underlying (ii) EBITA                    A$'M                 32.5                  25.0             30%
 Underlying (ii) NPATA                    A$'M                 23.0                  18.7             23%


                                                                 H1                    H1           Change
 Description                              Unit                                                         (%)
                                                             CY2021                CY2020
 Cash and cash equivalents                A$'M                155.5                 204.8             -24%
 Net Assets                               A$'M                222.8                 308.6             -28%


 Shares (iii) on issue                    'M                   54.2                 84.1              -36%


 NAV per share                            A$                    4.1                  3.7               11%
 ROE                                      %                    14.8                  9.3               60%
 Earnings per share (EPS)
        Basic EPS                         CPS                 22.88                15.88               44%
        Diluted EPS                       CPS                 20.49                15.85               29%
 Headline iv EPS (HEPS)
        Basic HEPS                        CPS                 22.05                15.70               40%
        Diluted HEPS                      CPS                 19.69                15.68               26%


Operational highlights

DRA’s revenue increase for the half year is across both its Projects and Operations service offerings.
The Kamoa-Kakula plant facility in the Democratic Republic of Congo was commissioned ahead of schedule
and below its capital budget. DRA has been involved with the project planning and development from 2017,
conducting multiple studies, before commencing the execution phase of the project in January 2019 on an
EPCM basis. The first copper concentrate was produced in May 2021.
DRA delivered the Tri-K Gold Mine Project in Guinea with first gold pour taking place in H1 CY2021 within
budget and schedule. Having completed the feasibility study for the project, DRA was engaged to deliver the
project as the EPC contractor, achieving 2 million Lost Time Injury free man-hours v.
DRA was also recently awarded the engineering and design of the Mt Keith Debottlenecking Project by BHP
Nickel West, in Western Australia. This contract is for the provision of detailed engineering and design services
to support the expansion of the crushing and grinding circuit at the Mt Keith Operation, including new stockpile
feed conveyors, coarse ore stockpile, reclaim conveyor, a 16MW SAG Mill grinding circuit and an 11kV
substation.


Safety / ESG

The Company’s 12-month Total Recordable Injury Frequency Rate improved to 0.691 vi. For the six months to
30 June 2021, DRA managed approximately 11 million man-hours at more than 39 active projects sites and
29 operations facilities (32 million tons processed) across the globe.

“Safety management and improvement of our practices are a constant and unceasing focus for the Group. We
will always look for new ways to make our people safer at work. During the period we implemented a number
of health and safety initiatives, including the rollout of the Line in the Sand initiative and new Life Saving Rules,
finalisation of Material Risk Standards, and the launch of Behaviour Management Training” Mr Naudé said.

The Company focused on ongoing proactive monitoring and management of the effects of the COVID-19
pandemic through engaging with clients and suppliers to navigate and minimise potential impacts to
operations. As a priority, DRA’s focus is at all times the health and wellbeing of its people, including those
directly or indirectly affected by the pandemic.

DRA continues to build on a track record of innovation in plant design and engineering to support sustainability
and transformation in the mining industry. Achieved through energy efficiency and optimisation, water
sustainability solutions, decarbonisation, virtual commissioning, remote monitoring and consulting.

DRA undertook campaigns in support of community upliftment and employee wellness including, upskilling of
mental health first aiders across the business. Additionally, the Company enhanced governance through the
appointment of an additional independent board member in Paulus (Paul) Lombard, the roll-out of a new Code
of Conduct and implementation of various new standards, including:

• Modern Slavery Statement
• Anti-Bribery & Corruption and Human Rights Standard
• Respectful Workplace Standard

CY2021 targets

The Company is focused on the next phase of its growth, post listing, and a strategic commitment to driving
operational excellence and customer centricity.

DRA’s strategy and business model is focused on long-term customer relationships and repeat business. The
Company seeks to support its customers as they move from one stage of development to the next, throughout
the project lifecycle, and as they expand into new geographies or commodities.

DRA is well positioned to support a transforming industry and will leverage its platform for further growth in
emerging products and services, including working towards a low carbon future and innovating plant design to
reduce emissions, waste and water usage.

Outlook and strategy

DRA has a significant forward pipeline with a total of A$7.5 billion in opportunities, A$5.0 billion Projects and
A$2.5 billion Operations respectively. DRA’s P1 pipeline vii increased to A$1.4 billion as at 30 June 2021,
providing a solid base for new business growth.

The Company maintains its full year CY2021 EBITA forecast of A$56.9 million, up 18.6% from CY2020.
“With a robust mining and resources sector globally, a significant forward pipeline of opportunities, a strong
balance sheet and a world-class team, DRA is well positioned to deliver continued and sustainable results
through the remainder of this year and into CY2022,” Mr Naudé concluded.


On-market share buy-back

As part of managing the Company’s capital position, taking account of solid results for the half year and its
strong balance sheet, the Company today announces its intention to undertake an on-market share buy-back
of up to 10% of ordinary shares on issue over a period of 12 months.

In addition to growth initiatives, DRA is committed to further enhancing long-term returns to shareholders with
specific capital management initiatives, including the buy-back announced today.

The buy-back will be funded from existing capital sources, including free cash. DRA will maintain its strong
balance sheet following completion of the buy-back. The DRA Board will continue to assess the merits of this
capital management plan as market conditions evolve, as well as to assess options to distribute any additional
surplus cash in line with DRA’s target dividend policy of distributing between 30-60% of its net profit after tax
from normal operations.

The timing and actual number of shares purchased under the buy-back, and other matters relating to the
conduct of the buy-back, will depend on the prevailing share price, market conditions, forecast future capital
requirements and other considerations including any unforeseen circumstances. The Company will only buy-
back shares at such times and in such circumstances as it considers beneficial to efficient capital management
and there can be no certainty that DRA will repurchase any ordinary shares under the buy-back. DRA reserves
the right to suspend or terminate the buy-back at any time.

Full details of the buy-back are set out in an Appendix 3C lodged with the ASX and JSE today.


JSE disclosures

Short form announcement

This short-form announcement is the responsibility of the Board of Directors of DRA and is a summarised
version of the Group’s full announcement and financial report. As such, it does not contain the full or complete
details of the Group’s half-year results for the period ended 30 June 2021.

Any investment decision should be made after taking into consideration the full announcement (comprising the
financial report for the half-year ended 30 June 2021), which can be found on the JSE website at:
https://senspdf.jse.co.za/documents/2021/jse/isse/drae/HY21finrep.pdf

The full announcement (comprising the financial report for the half-year ended 30 June 2021) together with an
investor presentation and ASX Appendix 3C Notification of Buy-Back, is also available for inspection, at no
charge, by appointment and subject to observing COVID-19 restrictions, at the registered office of the
Company’s JSE sponsor:

• Pallidus Capital Proprietary Limited, Die Groenhuis, 36 Garsfontein Road, Waterkloof, Pretoria

during normal business hours. Alternatively, copies of these documents can also be requested via direct
message under the investor section on the Company website at http://www.draglobal.com/investors/
The Company has a primary listing on the Official List of the ASX and has a secondary listing on the Main
Board of the Johannesburg Stock Exchange.


- ENDS -
This announcement was approved for release by the Board of Directors of DRA Global Limited.


For further information, please contact:

Investor queries:                                                    Media enquiries:
Haydn von Maltitz                                                    John Gardner
Head of Corporate Affairs – DRA Global                               Citadel-MAGNUS
Ph: +61 8 6163 5939                                                  M: +61 413 355 997
shareholders@draglobal.com                                           jgardner@citadelmagnus.com


About DRA Global Limited
DRA Global Limited (ASX: DRA | JSE: DRA) (DRA or the Company) is a multi-disciplinary engineering, project management 
and operations management group predominantly focused on the mining and minerals resources sector. DRA has an extensive 
global track record, spanning more than three decades and more than 7,500 studies and projects as well as operations 
and maintenance solutions across a wide range of commodities.
DRA has expertise in mining, minerals and metals processing and related non-process infrastructure including ESG, water 
and energy solutions for the mining industry. DRA delivers advisory, engineering and project delivery services throughout 
the capital project lifecycle from concept though to operational readiness and commissioning as well as ongoing operations,
maintenance and shutdown services.
DRA, headquartered in Perth, Australia, services its global customer base through 20 offices across Asia-Pacific, North 
and South America, Europe, Middle East and Africa.

                                                                                                                    

(i)   DRA has a January to December financial year, with financial year end on 31 December.
(ii)  DRA’s results are reported under the Australian Accounting Standards (AAS) as issued by Australian Accounting
      Standards Board which compliant with the International Financial Reporting Standards (IFRS) as issued by the
      International Accounting Standards Board. DRA discloses certain non-IFRS measures including underlying EBITA,
      earnings per share (excluding valuation of Upside Participation Rights (UPRs)) and headline earnings per shares that 
      are not prepared in accordance with IFRS. These non-IFRS measures should only be considered in addition to and not 
      as a substitute for, other measures of financial performance prepared in accordance with IFRS.
      A reconciliation of IFRS and non-IFRS measures can be found in DRA’s half year financial report for the period ended
      30 June 2021 and accompanying investor presentation.
(iii) Excludes 25M UPRs on issue; if all UPRs were converted to shares at current share price (A$3.50), fully diluted shares
      on issue would be 57.1M.
(iv)  Headline earnings are an additional earnings number that is permitted by IAS 33. The starting point is earnings as
      determined in IAS 33, excluding “separately identifiable re-measurements” (as defined in circular 1/2019 published by 
      The South African Institute of Chartered Accountants), net of related tax (both current and deferred) and related 
      non-controlling interest, other than re-measurements specifically included in headline earnings.
(v)   As at July 2021.
(vi)  Frequency rates are based on 200,000 man-hours.
(vii) Pipeline opportunities are categorised as “near term, high likelihood – in tender, tender submitted or being negotiated”.



Physical Level 8, 256 Adelaide Terrace / Perth WA 6000 / Australia // Postal PO Box 3130 / East Perth WA 6892 / Australia
Telephone +61 (0)8 6163 5900 // info@draglobal.com // ACN 622 581 935 // ASX: DRA / JSE:DRA


draglobal.com                                                                                                              

Date: 19-08-2021 07:05:00
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