Perenti delivers solid FY2021 Results: proactively managing headwinds and positioning for growth Posted on August 24, 2021August 24, 2021 by admin Perenti has delivered an FY21 result consistent with its revised expectations, achieving solid operational performance and growth from its Underground Mining business and an improved second half performance from its Surface Mining business. This solid result was delivered in a year where the Company’s financial performance was impacted by headwinds including the ongoing impacts of the COVID-19 pandemic on our international operations, tighter Australian labour market and a strengthening Australian dollar. Perenti continues to invest in our people, systems and mining equipment to build strong foundations and support the ramp-up of the Company’s key growth projects in FY22 to deliver business growth in FY23 and beyond. Mark Norwell, Managing Director and CEO of Perenti, said: “Firstly, I want to recognise our people, who provided high quality mining services to our clients with a focus on continuity of operations to deliver enduring value and certainty. “Our Underground business continued to be a standout performer, delivering a third consecutive year of earnings growth with a strong FY21 contribution. Impressively, this growth has been delivered in a year where we saw the slower than anticipated ramp up at several recently secured international projects due to the prolonged, and ever-changing, nature of the COVID-19 pandemic. “As expected, due to the planned contraction of our Surface Mining business following our strategic transition out of Yanfolila and Boungou, FY21 revenue, EBIT(A) and margins were softer than FY20. Pleasingly during the second half of FY21, earnings and margins generated by the Surface business more than doubled compared to the first half. This tangible and sustainable improvement in performance is attributable to the implementation of the findings of the AMS Strategic Review and continued solid performance from our Australian business. We are in a good position to move our AMS business forward and are encouraged by securing the Motheo and Iduapriem contracts, both of which are examples of the quality of contracts that AMS will pursue.” “The Investments business navigated difficult conditions during FY21 with softer east coast equipment rental market conditions impacting revenue and earnings. In response, we revitalised the leadership team and have increased our market activities including the implementation of a more targeted sales strategy, which has increased asset utilisation rates by 5 per cent since December 2020. “We continue to look to the future. Throughout FY21 we made prudent investments in our people and systems, while managing our balance sheet to ensure we are well positioned to fund our 2025 strategic growth aspirations. An integral part of this strategic growth is our technology driven service offering, idoba, launched in July. Through idoba we plan to improve our competitive advantage by developing a unique capability in emerging digital mining, technology and innovation.” You can read the full ASX Release here.