Tuesday 20 February 2018 by FIIG Research Company updates

Company updates – Emirates, Eric Insurance, NRW Holdings, PMP, QNB Finance, RSEA, zipMoney, and updated Factsheets

This week, new DirectBonds from investment grade banks, PMP profit downgrade, buyers sought for RSEA, zipMoney Trust update and half year results from Eric Insurance and NRW. Updated Factsheets for Sydney Airport bonds

Eric Insurance half year results

We have provided half year results for Eric Insurance, including our recommendation and credit outlook. Please see the full report available here*. Also read our compendium outlook*. 

NRW half year results

On 20 February 2018, NRW Holdings (NRW) released its 2018 half year results presentation.

Key points:

  • Revenue of AUD345.3m, up 95% on the same period last year with four month contribution from Golding acquisition
  • Underlying EBITDA of AUD40.3m, up 38% on the prior comparative period
  • Golding acquisition completed in September 2017 at an acquisition price of AUD85m; Golding net cash balance on acquisition (generated in July and August) totalled AUD10.7m
  • Net debt reduced to AUD49.8m compared to pro forma post acquisition debt of AUD76m
  • Improved gearing ratio of 20.4% compared to pro forma acquisition gearing of 33%
  • Cash holdings of AUD53.0m
  • Strong cash conversion, circa 93% of EBITDA

The full presentation is available here on the NRW website. Also read our compendium outlook*.

New DirectBonds

Here are the latest additions to our DirectBonds list, available to wholesale clients only.

Please note the Factsheets will require a wholesale login.

PMP profit downgrade

On 14 February 2018, PMP Limited (PMP) revised guidance, advising EBITDA for the first half of fiscal 2018 is expected to be AUD20.2m. This is AUD3m to AUD4m below PMP’s expectations for 1H18, which underpinned the FY18 guidance that was provided to the market on 20 November 2017, and is primarily a result of market factors relating to the mix of work.

Please see the ASX announcement here. Our research compendium outlook for PMP is also available here*. 

Buyers sought for RSEA

On 13 February 2018, this Australian Financial Review article reported that private equity firm CHAMP Ventures' is seeking a buyer for its workwear and road safety equipment company RSEA. It’s understood that CHAMP Ventures has called in boutique Allier Capital to direct traffic in an auction scheduled to launch as early as this month. 

RSEA is expected to be worth as much as AUD200m (estimated AUD20m annual earnings) and is likely to be pitched to bigger private equity firms and trade players in Australia and offshore, including ASX listed Wesfarmers.

RSEA is a specialist provider of workwear, personal protection and workplace safety products and hirer of road safety equipment in Australia and New Zealand. CHAMP Ventures bought into the business alongside existing management in 2012. The mooted sale process follows inbound strategic interest and comes as tyrekickers look for ways to play Australia's east coast infrastructure boom.

See our research compendium outlook for RSEA*. 

zipMoney Trust 2017-1 update

We have provided an update on the zipMoney Trust 2017-1 Class B notes available here*. Also see our zipMoney research compendium outlook*.

New and updated Factsheets

*Please note this content requires a wholesale client login. 

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