I’ve started this thread about Golding because it is now such an integral part of NRW, as a reference source, so new people wandering by can get some idea of what the Eastern States side of NRW Holdings is about (along with Hughes Drilling ) and so long term holders can review and reflect before we are updated on how things are going in the next couple of weeks with the preliminary annual report.
NRW Holdings bought Golding Contractors a private highly regarded Queensland-based company founded in 1953 ‘ Mr Gladstone’, Cyril Golding, less than a year ago for $85 million
https://www.gladstoneobserver.com.au/news/apn-golding-sells-but-family-name-set-to/104084/
The competed sale was announced September 1, 2017 .
NRW Managing Director and CEO, Jules Pemberton said
“
The acquisition represents a unique and exciting opportunity for NRW to enhance its presence in the civil infrastructure, urban and mining services sectors on the East Coast of Australia. Golding represents a compelling strategic fit with NRW and, one that will enable us to grow our service offering into adjacent and complementary sectors with Tier 1 clients”.
https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTDYC5we+wBeZruBxke92GA==
“
NRW said it was raising up to $30 million from investors and had obtained a $48 million debt facility to fund the acquisition.
Sold by CHAMP Private Equity, Golding is a civil, urban and mining services provider operating in Queensland and NSW.
NRW said Golding had fiscal 2017 revenue of $369 million and earnings before interest, tax, depreciation and amortisation of $53 million. “
It has 700 employees and an order book of about $500 million, of which about $275 million is contracted for this financial year.
https://thewest.com.au/business/mining/nrw-buys-golding-group-for-85m-ng-b88567207z
Since then Golding has indeed delivered the “step change in scale “ shareholders were promised .
On the 5th September a $25 million Gooding one year coal contract at Broadlea was announced
https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTDYC5we6zBCZruBxke92GA==
On 10th October Golding’s acquisition, current status and history was summarised in detail at the Macquarie conference
https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTDYC5gq4zxiZruBxke92GA==
At the AGM on November 20, 2017 Jules said NRW management had been studying Golding Contractors for a long time before the purchase and felt strongly the ethics, values and business practise of Golding closely aligned with those of NRW Holdings .
Golding management team was hailed as being of the highest calibre.
He also said:
“
The $85m Golding acquisition was announced and completed during August. It is transformational and highly strategic for NRW as we now operate a diverse national business with a strong delivery capability working with a tier one client base throughout the civil infrastructure, mining and urban sectors.
Golding brings the highest National prequalification for civil construction contracts R5/B4 to the group enabling us to tender independently rather than by joint venture for large civil infrastructure projects. The business also possesses the technical capability and expertise of whole of mine operations including dragline and wash plant management, further enhancing our overall service offering.
The urban market is new to NRW however it is a very counter cyclical business compared to the resources business and demand is largely driven by population growth rather than investment. Golding deliver the services very well and are currently working across multiple sites for tier one developers.
The integration of Golding is progressing very well and the business’s operating performance in the months since acquisition has met or exceeded our expectations.
The Golding business is a fantastic business in its own right with an excellent delivery capability and long term tier one clients, however the real additional value for NRW as we move further into an upcycle in activity is the large pool of resources and expertise we have available to deploy across the group and into the regions in which we operate. As the civil infrastructure market continues to expand, securing skilled labour, plant and equipment becomes a critical step in ensuring our ability to deliver larger projects for our clients.
Since then :
At the half yearly the outlook included
•
Growing Infrastructure requirements in Queensland and New South Wales
• Further stages of existing property developments, growing SE Queensland property sector
https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTDYC5Ay0yxKZruBxke92GA==
And Golding has since won a trifecta of coal work securing the $420 million Baralaba North contract, a $210 million extension for Coranado at Curragh and a $93 million extension at Isaac Plains.
At the operational update
https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTDYC6wa7zRSZruBxke92GA== Jules Pemberton, Managing Director and CEO said, “NRW continues to be very well placed to capitalise on the significant strength in the Australian resources and Infrastructure sectors. Our increasingly diverse and geographic service offering is further broadening and currently includes projects for key clients across the bulk commodities, lithium, gold, public infrastructure and urban development sectors.
While several comments have been made re civil infrastructure and urban development so far Golding has not flexed those muscles to any major extent for NRW shareholders .... but here’s a sample of one of the projects the company was doing just before NRW made the purchase.
4 June 2017
https://www.choicehomes.com.au/article/coomera-to-helensvale-rail-duplication-project
(20min delay)
