SRG Global Limited (SRG) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to the SRG Global Full Year Results Investor Briefing. [Operator Instructions] I would now like to hand the conference over to Mr. David Macgeorge, Managing Director. Please go ahead.

Thanks, Zack. And I'd personally like to welcome everyone to the call this morning for our FY '23 full year results presentation. I think as you may have already seen, it's been a terrific year for the business. And I'd really like to acknowledge all our people at SRG Global. There will be many on this call this morning, and they've really stepped up again in the last 12 months and really lived and breathed what we stand for as a business, live for the challenge, smart together, never give up and have each other's back. So I really want to acknowledge everyone and thank you for all your efforts over the last 12 months. As we move to Slide 2, I always like to start with a bit about us, who we are and what we stand for. We are a diversified industrial services company. And I think as you can really see the diverse nature of what we do and what we do is bring an engineering mindset to deliver critical services across the entire asset life cycle of engineer, construct and sustain. I'll break that down in a minute or 2. When I talk about engineering mindset, it's a smart, technical innovative company, and this is for critical services that make us sticky for our clients, and we do it across the entire asset life cycle of engineer, construct and sustain. And what we want to be, our vision is the most sought after in what we do. Some might say #1 market leader, for us, it's been the most sought after. And so, when our clients have a challenge, a problem, an opportunity, the first people they think of when they pick up the phone is SRG Global. We move to Slide 3. This gives you a pro forma profile of the business that we are today, and we are a very different business. We have 3 operating segments: Asset Maintenance, Mining Services, Engineering and Construction. You can see the size of the business now more than 3,300 people across 20 industries and more than 100 sites in 5 countries and sort of a pro forma circa $1 billion business with a roughly $400 million market cap moving forward. We move to Slide 4, which is really the summary of the year. And it has been an excellent year for SRG Global. And really what you're seeing is evidence of us continuing to deliver. It's a record financial result. FY '23 EBITDA up 40% on FY '22, which is just above the top end of our upgraded guidance range. EBIT up 46%, a really, really strong performance. A terrific returns for shareholders, EPS up 34% and our fully franked dividend, the final fully franked dividend of $0.04 per share, up 33% on FY '22. Second half dividend of $0.02, also up 33%. I think that's one of the great things about our business, we're very much a growth stock, but also a good dividend yield, stop throwing off gross yield of circa 8%. I think one of the key elements of the year is just the evidence of winning and executing. We won more than $1.2 billion of work in the last 12 months. We've record work in hand at $1.9 billion, which is up 46% on FY '22. But the pleasing thing for me is, not only are we winning, we're also executing, and Roger will touch on this further on in the presentation, but particularly pleased with our margin percentage improvement. And when you look at our journey over time, and I've been asked this many times over the course of the last few years as we've grown, are you buying work? When we think about our track record, we've gone from 7.4% EBITDA margin to 8.3%, to last year 8.9%, to this year 9.9%, which is a phenomenal achievement when you consider the growth that we've undertaken. So clearly, we're not only growing and winning, we're executing as well. We've also got a terrific track record now of acquisition success, and I'll touch on that a bit more in a moment, but it's really giving us a great platform for the future of what is now a very, very strong growth outlook with guidance for '24 of circa 20% EBITDA growth. And really for us, it's about continuing to execute our long-term strategy. And we see a very strong growth profile for our business over the next 3 to 5 years. So, I think in summary, a really, really terrific performance at SRG Global in FY '23. As we move to Slide 5, I think the key thing here is, this is not a one-off. This is a track record of us continuing to have really, really positive performances year on year on year. And you can see the really good trend from an EBITDA perspective and the growth over the last few years, again, a really strong track record. You've seen the period, revenue was up 26%, [ not ever ] get too hung up on revenue, to be honest, it's all about bottom line performance at really good top line growth, really pleased with our cash conversion. We have a very strong track record of cash conversion over the last few years at 68% cash conversion each year, which is a really strong performance given the level of work that we've won. And we've won more than $1.2 billion worth of work in the last 12 months. We got to fund that. That really strong cash generation has helped fund that working capital growth. And I'm particularly pleased, it's very much part of our culture and DNA of SRG Global, and it's one that I think is a really, really strong performance as we move into the future. Again, from a shareholder perspective, you can see the really strong track record in trends from both an EPS and a dividend perspective, and I think that's one thing that we've done really, really well over the last few years really bouncing that growth and dividend paying stock. And to me, it's one that I think, not only is it a terrific year in FY '23, but it really is just a continuation of building on what is a really good track record of financial performance. And to me, I always like to link it back to strategy. And as we move to Slide 6, this is all off the back of us executing what has been a very, very clear strategy for a very long period of time. We're doing everything that we said we would do, in my mind, we're ahead of schedule on where we want to be. So all our SRG Global people on this call [indiscernible] as I say that we are ahead of schedule and where I would expect it to be from a strategic perspective. Pretty much in the growth phase of that strategy, [ where a step ] change growth in Asset Maintenance services and you're really seeing evidence of that, innovation and selective growth in Mining Services, you're seeing evidence of that, targeted growth in civil infrastructure construction and remediation, you're seeing evidence of that, specialist services and products in building construction with key clients, you're seeing evidence of that. And in this phase, really sort of 2/3 annuity, 1/3 project-based earnings. We're probably a little bit ahead of that. And then really for us, it's -- the growth phase and the leadership phase will more morph together as we move into the future. We're aiming to be 0 harm ESG industry leader and an employer of choice. So we are attracting good people to the business as we grow. Domestic and international growth in engineered products across all segments, which will ultimately become the fourth operating segment of the group in the next 5 to 7 years, selective acquisitions to complement our capability and our footprint, and you're seeing evidence of that, consistent returns to shareholders. And look, we feel in this phase that we'll kind of be around the 80% annuity, 20% project-based, and that's probably more off the back of the inorganic growth that we see in front of us, which will more that sort of annuity recurring style businesses. And one of the key elements of our strategy is that selective acquisitions. And if we move to Slide 7, and you're really seeing that track record of acquisition success. It's very much a key element of the leadership horizon. And when we look at the last 12 months, in February this year, we bought Asset Care, which was from ALS. And why we like Asset Care, it's pretty much that front-end asset monitoring, inspection, testing to very much complement our back-end maintenance execution work. It's a business that I've had on the radar for a long, long period of time. It's a very technical business, a lot of good software, a lot of good technology and it really gets to that front-end smart piece to then have the ability to execute the work. That was a really successful raise, well supported by our shareholders. I thank you all for that. And the start-up in the first 3 or 4 months has been terrific. Integration is very well progressed, really, really good feedback from our clients and particularly made the highlights is the cultural integration. It's a terrific business, well led by Greg Fletcher and the team, and they've really embraced us and we've embraced them and it very much feels that we're one and the same, which is really the whole -- they can see how they fit within our strategy, and that's been a terrific start. And certainly, from what I see in front of us, a very, very bright future on how it's enhanced our business. We got our first full 12 months of our Infrastructure business, formerly WBHO Infrastructure, a really successful first year, completely integrated and exceeding our expectations, very well led by Will Grobler and the team. We're delighted about how the first full 12-month performance for that business. We also had a very modest acquisition in our Engineered Products business. This is an existing business that we ultimately want to become the fourth operating segment of the group. We acquired Bartek Systems in the period. It's an engineered coupling systems products business and very much expands our product range and access to a supply chain that helps build another brick in the wall and where we want to take the products business. Why would I like products? It's very much the same clients, the same sectors, the same geographies. These are specified products, such as engineering sell. And you make products, you sell them, you get paid. It's a very low-risk complementary skill set and capability that we think adds to our business. And really, as we move to Slide 8 and what you're seeing has been a phenomenal strategic transformation of the company that's really delivering sustainable growth. We're very much a diversified industrial services business with a high level of annuity recurring earnings. We've got exposure to diverse sectors and geographies with a pipeline of in excess of $6.5 billion, and you've really seen the evidence of us and our ability to win and execute work. We've got record work in hand up 46%, which gives us a terrific platform for the future. And as you can see, coming into FY '24, we're not stopping here in terms of the growth as we move into the future. And all that is ultimately underpinned as we move to Slide 9, by really strong foundation in the ESG space and what we stand for. And I think one of the things with SRG Global, we keep it very real. We try and do things that make very much a difference in the industries that we operate in from a 0 harm, governance, sustainability, indigenous engagement, community and people and translating to what we stand for as a business. So I always say it's not the best [ wishes ] or the smartest strategy that drives performance, its people and culture. And very much what we stand for in terms of life for the challenge, smarter together, never give up and have each other's back. That is how our people operate. And that is what's driving this performance with our people and the strong culture that we have and how we want to make a real difference in where we operate. If I dive into a little bit more detail, firstly, starting with environment. There's a lot of really positive impacts we're making in this space, and it's really about us playing our part and working with our clients on their sites. I'm not going to go through this line by line, but certainly from some of the initiatives around local tree planting, particularly in our -- with our partners in the defense sector and new manufacturing facilities powered by renewable energy. Also our temporary side offices, and you can see one of the photos there, where we're using solar panels as a new and innovative way to power our operations. And on the procurement side of things, particularly want to highlight sort of the greener concrete, which we're doing good trials with our partners in this and other products that we use in what we do. And it's all around reducing our carbon footprint and using some of our engineering skills to do so, particularly around design, some of the innovative facade design, certainly, the Atlassian project is one that is, I think, a real showpiece for the sort of skills that we have in that space. And also in our civil infrastructure and engineering business, where a lot of really smart engineering designs about how to reduce concrete requirements in structures such as water storage tanks and wind farms. Again, it's about keeping it real, us playing our part and really working and helping our clients. On the social side of things, as we move to Slide 11, I'm particularly proud of the work that we're doing in the indigenous space. Bugarrba joint venture is really going from strength to strength here. I'll highlight some of the new contracts we've gone with FMG and BHP. You can see a photo there of Terry and Gloria there, our partners at Bugarrba. We've really well progressed on our Global Reconciliation Action Plan. A lot of really good initiatives in terms of traineeships, NAIDOC initiatives and education programs, along with our key partners being Clontarf and Shooting Stars for our female empowerment program. Keeping that partnership theme in mind, our some of the other social partnership areas, the Perkins Foundation and the Cancer Council, the cancer space and MATES, which is along with psychosocial lines, Starlight Foundation, along with various organizations in the local communities in which we operate today. On the diversity and inclusion side, there's a lot of really good work we do in that space. At corporate level, it's sort of about a 50-50 split between female and male participation. In the blue collar space, in reality, it's less than 10% female participation. We do look for new and innovative ways to really develop the female side of our business in the blue collar area. A lot of real successes in the period. Linda Lamb, particularly I want to highlight of her winning the Women in Civil Award at the CCF Awards night. Terrific recognition for Linda [indiscernible]. We also did add some other finalist, Beth Salter, who is the Training Professional of the Year and Lindsey Black is the Administration Coordinator of the Year. A lot of really good things we do in the space, and we continue to drive that in our business. On the governance aspect, we have a very robust framework, firstly, starting with 0 harm, and I always say safe business is a good business. I always call it the glass ball in business you bounce a lot of balls and juggle them in business, they are all rubber, but safety is the glass ball you cannot afford to drop. And really, our focus is developing leaders in this space. We have a Leading@SRGGlobal program. We've also developed an in-house program for Workplace Psychosocial Front Line Management. It's really about equipping our front-line leaders in this particular area. And ultimately, in safe, it's about focusing on the critical risks in our business from a 0 harm perspective. Now, keeping that risk management theme in mind, from an overall company perspective, we have a very robust risk management framework that we continuously refined. We have created a new role in the period as Head of Risk and Sustainability, which is Cameron Dee and he's doing a terrific job and really enhancing our work in this space and really helping support and facilitate what is a very well-established risk team and management system. On the ethics and transparency element, a lot of suite of documents, procedures and charters around Code of Conduct, Board Charters, Continuous Disclosure Appliance, Whistleblower, Anti-Bribery and Corruption Policies, along with a number of Modern Slavery initiatives to ensure that we're complying and the partners that we deal with are complying and being good corporate citizens. I think overall, I'm really proud of the progress we've made in the last 12 months from an ESG perspective. We are keeping it real, and we are making really good headway, which will continue in the course of the next 12 months. I want to switch gears now and sort of move to the financial review, and I might hand over to our CFO, Roger Lee, to take us through that section.

Thanks, David. If we touch on Slide 14, the key takeaway out of this slide is the strong margin improvement across all the key markets from FY '22 to FY '23. And in particular, highlight the EBITDA margin movement from 8.9% to 9.9%. David's already touched on that. But I think that's particularly pleasing given it's been a year that we've grown significantly and yet been able to deliver a significantly improved margin profile across all our areas. And to the next slide, on Slide 15. And you can see the breakdown of where the breakup of all the different segments in our business unit. Asset Maintenance continues to deliver a very consistent margin of that 11.9% mark, and that's against the backdrop of a strong growth year as well in FY '23. Very pleasing and evidence of strong operational delivery in that business. Mining Services, EBITDA margins of 21%, very much in line with historical results and very much again, evidence of good, high utilization of assets and again, very strong operational performance across all our mine sites. Engineering and Construction had a very good margin of 8.7%, incredibly good result, especially given the current backdrop in that sector in that space. All I can say, I guess, it's very strong evidence of our commercial framework, a strong relationships with our clients and just how we continue to deliver with our key partners in all areas that we service within that Engineering and Construction sector. Our Corporate division, $17 million, 2.1%. We feel it's very -- it's lean and it's appropriate for the business, but we also feel that there's further scope to leverage that as we grow even further. Next slide, please. We've always shown a waterfall in a very detailed analysis of where our cash is and our cash conversion numbers. And as you can see, David's already touched on the cash conversion rate of 68%, and I think it's a very strong result, particularly given the reasons that we talked about before, a year of strong growth, a year of strong performance and also a year of paying down debt and rewarding our shareholders through all this as well. Next slide. Robust financial position in FY '23. We've always had a very clean balance sheet, a very robust balance sheet, one that's very well positioned for growth into the future. Our gearing ratio of circa 4% is modest. But, I guess, again, it provides a good strong platform for us to grow together with our undrawn facilities, so our key bond providers and banks. We are very well positioned for our balance sheet to provide further growth of the business. Thank you, David.

Thanks, Roger. I think again, in something really good set of financial numbers and really shows the robustness of the position of the company is in as we move into the future. So I'll switch gears again and sort of move to our operating segments. So I'll switch over to Slide 19 and start with our geographic footprint. And I think you really see now is the evidence of just a terrific platform that we have today. One of the great things about our business is that, cross-selling culture. And to me, you can really see just the depth of services that we're now providing across a very, very broad geographic platform, both in Australia and New Zealand with a small smattering of projects in other parts of the world. And to me, this provides massive opportunity. We've got a great footprint, a good depth of services. But in reality, we're getting started in terms of how we can really leverage that footprint and the geography that we now have. We delve now into the individual 3 operating segments, first with Slide 20, Asset Maintenance. If there's one key takeaway from the Asset Maintenance business, it's the quality of the clients and the diversity of services on which we provide. It's very much a blue-chip client base across a broad range of sectors. So we move to Slide 21 and the Asset Maintenance year-end review, looking an incredibly strong year from an Asset Maintenance perspective, a number of long-term contracts secured across a broad range of industries with customers such as Meridian Energy, Genesis Energy, Alcoa, Rio, FMG, Albemarle, Fremantle Ports and Transport, just to name a few. We continue to expand our geographic reach, and you can see evidence on that on a couple of slides earlier that I talked to. Our Bugarrba joint venture is well established, as I mentioned earlier, with now new long-term contracts with FMG and BHP, and there's a lot more that we can do with that business. And a real highlight was the acquisition of Asset Care, that's front-end monitoring, inspection and testing to complement our back-end maintenance capability. It's a very smart technical innovative business with a lot of software that we will continue to develop and apply across the broader parts of the group. We're delighted to bring that business into the fold and we've bought well. So moving to the Mining Services business, which is our Production Drill, Blast and Geotechnical Services business. Again, I think the key takeaway is it just the quality of the clients, the quality of the commodities where we play pretty much exclusively in gold and iron ore and what is a very production-based business. The year in review, look a terrific year, well led by Nathan Steiner and the team, a number of new contract wins with one of our key clients, Northern Star. A lot of really good things that we're doing to develop our data intelligent software called Orbix. It's all predictive intelligence that brings good data insight. And we're not a software tech business. But in reality, not only in mining, but across-the-board, we've got a lot of in-house software that we've developed that's integrated with our clients. It very much takes us to the front to the smart end of town. We continue to develop a lot in that space. And I very much see software and technology as the enabler, that really allows us to then be sticky embedded with our clients and then drive the actual execution work and Orbix is a really, really good example of that. We have a very good pipeline of further opportunities. And we're really just focused on growing with our existing clients and adding a couple more. This business is very, very well poised for the future for the next 3 to 5 years. As I said earlier, it's all production-based. We have nothing in the exploration area. So very much a consistent thematic moving forward. The third operating segment is Engineering and Construction. Again, from a client perspective, it's government clients in the water, transport and defense space, along with some long-term partners in the building space, being Multiplex, Lendlease and Built. It's a very focused targeted business with our specialist skill sets. If we look at the year in review, some really, really good project wins on civil infrastructure business, both in the private and government space. We now do have the highest national road and bridge accreditation being R5/B4, and I think that will bear some real fruit in FY '24. Yes, there has been a lot of -- the Albanese federal government sort of there has been quite a bit of work around sort of assessing infrastructure projects as we move into the future. And I'm really, really positive on how that accreditation is going to really drive growth in the business as we move into the future. We're an absolute leader in specialist facades led by Paul Dawson and the team. And really, you can see we're an absolute market leader of both all states of Australia and now New Zealand, we're almost agnostic as to the type of structure of the sector, be it, health, education, hospitality, commercial, residential, it's really following our key clients and being an absolute leader in the space. In our Engineered Products business, we are step-by-step growing that business throughout all becoming the fourth operating segment of the group in the next 5 to 7 years, and I'm really, really pleased with the progress we've made in the last 12 months. I think underpinning our Engineering and Construction segment, and Roger touched on this a little bit earlier, it's just a robust commercial framework that we have. We have 25 to 30 very key long-term partners and clients. It's very much an early contractor engagement style with blue-chip clients. It's really targeted, it's very specialist and we're an absolute leader in what we do being that most sought after in the areas that we play in. I'll switch gears again to sort of more the outlook moving forward. As we move to Slide 24 -- 27, sorry, it's really just continuing to execute what has been a very clear strategy, very much the growth horizon and we're more into the leadership horizon, probably the key elements of the products ultimately becoming the fourth operating segment, which I touched on, we will continue to look at some complementary acquisitions that either complement our capability or our footprint. And really, over time, will sort of be an 80-20 sort of split from an annuity recurring versus project-based, look, whether it's 75-25, 80-20, 85-15, really for us, it's more just what makes most sense for the business at the time. But it's very much continuing to do what we said we would do. We've got an excellent platform as we move to Slide 28 in terms of $1.9 billion work in hand, which is a record, really strong pipeline of further opportunities. And to me, the key takeaway from this slide is that the quality of the work in hand we have, the quality of the opportunities. And just when you look at the map of where we operate, just the ability now to really leverage the footprint that we have with the capability that we have and the clients that we deal with today. Which leads to a very positive outlook on Slide 29, where operating segment performance is driving very positive momentum. Asset Maintenance, step change growth in diverse sectors with blue-chip clients. Mining Services operating higher demand, high-quality growth commodities. Engineering and Construction linked to significant infrastructure investment. Engineered Products gaining momentum both domestically and internationally. And Asset Care really transforms what we do in that Asset Maintenance space and getting it that front-end asset monitoring and testing capability. If you look at the overall year and the momentum moving forward, guidance of circa 20% EBITDA growth, the strength and diversity of the business is providing that protection against our labor and cost pressures. And I think you can really see the evidence of our margin percentage improvement about the robust commercial framework that we have. Our balance sheet is in terrific shape to really -- we're showing that we've really been able to fund the growth and working capital requirements of the business through our cash generation and earnings profile of more than 2/3 annuity in '24 and beyond. And the strategic transformation thought is now a diversified industrial services business will continue to deliver results as we move into the future. And that really is the investment proposition of SRG Global, as you move to Slide 30, end-to-end asset life cycle capability where we've enhanced that through the period. We play in diverse market sectors and geographies. And I always call that we've got a natural hedge that we're not wedded to one client, one sector, one geography. We have a very broad platform on where we can apply our skills and services. It's a highly scalable business model with experience and systems and really what you've seen in the last 12 months, looking reality in the last 3 years, evidence of us scaling this business, leveraging our cost base, improving our margin percentage profile and really delivering top line growth with high-quality blue-chip clients. And we now have a very high level of annuity earnings profile, which makes us very predictable as we move in for the future, a very capital-light investment profile with sort of CapEx circa -- sustaining capital circa 2% of revenue as we move into the future on a high-yield dividend stock with gross yields around that 8% mark. And I think we've done a terrific job sort of managing that growth and dividend paying element of our business. I'd really like to acknowledge our shareholders for their support in the last 12 months. It's been a very, very positive period for the company, and I'd like to thank the shareholders as well. It is a very exciting time ahead. And I'd like to close with, again, acknowledging all our people in the SRG Global family. You've done a terrific job in the last 12 months. It's been a very exciting period. FY '24 reshaping up as a very, very exciting year. Again, I'm proud to come to work every day and work with the great people that we have in the business, and I can't thank you enough for all your efforts in the last 12 months. Thank you.

We might just go to questions now. And there is a few that's come through and feel free to send some more through as we answer some of these. So in no particular order. So the first one around EBITDA margins, obviously, a very good result this year on EBITDA margins. What's your view on EBITDA margins going forward, David?

Look, I think the margins will be pretty consistent. I always sort of said the 10% was our aspiration. I think we've done a terrific job perhaps getting a bit earlier than I may have promised. So I think sort of around that sort of 9% to 10% range is really where we'll see moving forward, and that's -- so we see that as very sustainable margins as we move into the future.

Okay. One around dividends, a view on dividends? Do we have a target payout ratio?

We have no set policy, but we consistently tend to pay in the 50% to 60% range. I think this year it was about 58%. So very much in that 50% to 60% range, and that's look something we've consistently done over a long, long period of time.

All right. Terrific. One around our debt levels. I guess, I talked about a good position for us. What's our view on using debt going forward for future M&A or opportunities going forward?

Look, I think from a -- look, we'll look at all aspects of how we fund any internal -- sorry, inorganic opportunities as we move into the future and look, for us, probably from an organic sector, the key areas are Asset Maintenance, potentially fast-tracking things further on the East Coast is one possibly adding and to the capability more. Mechanical is probably an area that we have a good skill set in, but can perhaps enhance a little bit further. Engineered Products is another area that I particularly like and sort of looking for opportunities in that particular space as well. And then I think that sort of Asset Care technology element is probably another key element for us, probably unlikely to be in the Mining Services space. I'm pretty happy with what we have there and probably are unlikely in the Engineering and Construction space.

Okay. And some more general questions. One around Asset Care. Now that we've had it for 4 months, how is it going and what are our expectations going forward in '24?

Look, I think it's been a really positive first 4 months. To me, more -- the thing I focus on in any acquisition in the first 12 months is culture and make sure the cultural integration is strong. Our base case for the first full 12-month period is sort of around that 15 -- sort of that $15 million EBITDA mark. And that's very much my expectation for the business through FY '24. I think our first 4 months was about $5 million. So very much on track. And the thing for me is, it's a marathon not a sprint. My whole focus is integrating the business well, really getting to work well together and we think we can grow this business significantly as we move into the future. And it really does facilitate growth within our existing businesses and vice versa. So that's my expectation in the next 12 months.

Okay. Just one more on cash. So cash conversion 68% this year, what's our view on cash conversion going forward next year and the years ahead?

We've always had a really strong cash conversion history over a long period of time. I think circa 80% cash conversion would be a good proxy for us moving into the future.

Yes, yes. Okay. Again, the pipeline, where do you see some of the near-term opportunities, which particular areas, David?

Look, I think across all 3 operating segments. It's probably sort of interesting in the federal government sort of had a sort of 90-day embargo on sort of -- on certain infrastructure projects across-the-board. And I'm pretty -- I think Engineering and Construction will be quite strong on some of the things that we're targeting. There are some great opportunities for us in the Mining Services space. And then Asset Maintenance, we also see good opportunities moving into the future as well. And I think in that area, in particular, it's one that a lot of that won't necessary be an announceable event. So it's really around cross-selling and leveraging the footprint we have. And one of the good things when you've got a really, really strong base of term contracts is your fixed cost base is already paid for on site. So any sort of ad hoc opportunities you get, it will generally be at a higher margin. And so, I think there will be good growth across all 3 operating segments of the group. Perhaps, I think $1.2 billion in the last 12 months was really break out year. I'm really, really keen to ensure is that, we're very disciplined and target and ensure that, not only do we win, but we execute well. And I'm not going to grow for growth sake. I never get hung up on revenue, it's really about consistently winning well with the right skill sets, the right clients, the right commercial terms, but then ensuring that we execute well. And the last 12 months, I think you've very much seen evidence again of that.

Yes. All right. Terrific. One around the Engineering and Construction division, the significant margin improvement year-on-year. What's your view of that profile going forward?

Look, I think that's probably a reasonable proxy for the business going forward. And one thing our Engineering and Construction because we basically -- and this is across-the-board, we pretty much self-perform everything that we do. We are very targeted by skill set and client and we're willing to be quite patient. So we have to carry certain engineering costs through a period, we will do so. And it's about being disciplined and focusing on the right work with the right clients and the right commercial framework. So look, I'm pretty happy with the margin profile that we now have in Engineering and Construction. In reality, the individual projects are generally a bit higher, but it's all between jobs, the overall blend means that it's kind of sitting around that mark, and that to me, I think is a good performance.

Yes. And this question here around the Asset Care business and the 4 months that we own it. I think you kind of touched on this before, but...

Yes, it's a $5 million EBITDA in contribution and because that transaction costs of about $4.5 million as a one-off.

Yes. Just a question on the debtor book and any concerns around ageing or whatever, no, we don't -- I think this is again a testament to the strong client base that we have. We run -- we talk about a strong commercial framework. And, I guess, the margin profile is terrific evidence of that. Just trying to just work to because some of these have been covered off. So, just give me a moment here. Overseas work, what's our view on international work going forward, David, do you see that remains a target for us?

I think for us the international opportunities are very much more a medium-term play in that sort of dam, bridge and tank space. Along with Engineered Products, we are now selling products into the U.K. We've seen potential opportunities not broadly in Europe. And I very much see that the international element has been more a medium-term play. There won't be a significant contribution in FY '24 in our outlook. We think there's a lot of really good opportunities closer to home, but in reality, some of the skill sets that we have, what we are renowned for around the world and the world started to open up a bit more for those opportunities, but we're not in any big rush to really push it too significantly.

Okay. One around Asset Maintenance around tendering new work and working together with ALS or the Asset Care business. How have we seen that sort of take up happen?

It's been excellent. And not just with Asset Maintenance and Asset Care, to be honest, it's been really across-the-board. Look, we know we've had some early successes in areas in transport and the bridge space. We've now -- Asset Care has now entered the New Zealand market, which was probably about 12 months ahead of when I would have expected, but the client feedback has been phenomenal. And it's very much fits the thematic that we've known for a while in terms of clients want to deal with less players that do more. And having that front-end capability to then back-end execute the work has been a winning -- it really has been a winning formula. So the cross-selling opportunities has been terrific and we're already seeing early evidence of that.

Yes. We probably covered off most of it. There's one on products here being a key focus for us going forward in becoming the next operating segment. David, what's your view on that because we talked about this in the past.

Sorry, Roger the...

Engineered Products? Yes.

Yes. I think I've been on record for a long time. I like the Engineered Product space. It's an engineering sell. We have some clients, the same sectors in which we operate in today. And that's a natural extension. It's one that from a risk profile, you make it, you sell, you get paid. It's a very low-risk profile. And we are seeing some really good steps forward in this space. Look, I'm just trying to give, I guess, a good indication of the future and where I see the future going. We have a very clear strategy. It might be 5, 7 years down the track that we're there, but it's really flagging to the market [ of the aisle ]. We like that area, and I see us as having the ability to be very, very successful in that space, but it will take time, and we'll do it in a very measured and disciplined way.

Maybe just one final one in terms of the pipeline and you talked about the option pipeline and the $6.5 billion. What's the approximate time frame for conversion for that, David?

Well, I think we've got some really good near-term opportunities. I mean, we're well placed for FY '24. Look, in reality, we've got an incredible work in hand number that takes us really forward over the next few years. And we'll keep winning work, but it will be the right work and then we'll do it in a way, but I'm comfortable that we're winning on the right commercial terms with the right clients with the right skills, but also with the knowledge that we can execute it well. And look, we've grown a lot, as you can see over the last few years and I want to ensure that we can keep -- continue that discipline in the execution as well and looking how we really double that our workforce over the last couple of years. And so to me, continuing to be very measured and disciplined the way we grow and not just another -- I'm not expecting to sort of grow by 40%, 50% every year because you've really got to grow, [ make ] things down and keep growing. And I think we've managed and bounced really well with the business as we've grown over time.

Yes. All right. I think that's probably all the time we have for the questions. So, David, over back to you.

I just want to thank everyone for the call today and really looking forward to delivering for you again in the next 12 months.

That does conclude our conference for today. Thank you for participating. You may now disconnect.