SRG Global Limited (SRG) Earnings Call Transcript & Summary

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

Thanks, Darcy, and welcome, everyone, to the call today. It's a really pivotal day for us in terms of SRG Global's journey, very much a transformational day for us as a business, quite a bit to get through today. So I really touch on the key themes of the business and the go forward. But before I do that, I'd really like to acknowledge our people. There will be a lot of SRG Global people on this call. They've done a terrific job not only in the last 12 months, but in the last 4 to 5 years, of really transforming this business and really living and breathing what we stand for live for the challenge, smartly give up -- never give up and have each other's backs. And I really want to acknowledge the great work they've done and I'm proud to be a part of the team. As I mentioned, a lot to get through today, so we'll really stick to key themes. If we move to Slide 2 which is the executive summary. And really what you're seeing here is just evidence of the delivery of the business. So I'll focus on FY '24 first, then we'll talk about the acquisition and the way forward, and we'll stick to the key themes. And I think from an FY '24 perspective, it's a record result, $98.5 million EBITDA, up 23%; EBIT up 31% to $65.6 million, a terrific result from a continuation of growth of the business, continued strong returns to shareholders, EPS up 15%, a second half dividend of $0.025 a share, taking the full year dividend to $0.045, which is 13% up on last year, showing off dividend yield fully franked to 6% plus which really did and we've done a great job, I think, in terms of balancing both the growth and the yield dividend for shareholders. Excellent cash generation, continues our strong track record of cash generation, which really underpins the business, a terrific result moving from net debt of $17 million and net cash of $17.8 million, off the back of 117% EBITDA to cash conversion and a really, really strong result. We'll go into the detail of the '24 results, but I think overarching a terrific result and a record result for SRG Global in our history. In terms of the way forward, today, really pleased to announce the transformational acquisition of Diona, they're a market leader in water security. They need to transition, [ transform ] the deal for us, and I'll talk through the detail of that at circa 10% EPS accretive. It continues on way forward of our track record of winning and executing work. We're now $3 billion work in hand. We've transitioned the profile of the business to 80% annuity recurring earnings and really gives us a terrific platform and visibility into the future on how we will grow the business. We've increased guidance for FY '25 to circa $125 million. That includes a 10-month contribution from Diona. And the footnote there really breaks that down, it assumes an 11% growth rate for the SRG Global core business, plus a $16 million EBITDA contribution from Diona, which is for a 10-month contribution from them. So it really provides, I guess, some certainty in scale and size of the business that we are today and the business that we are moving forward. But getting into the FY '24 results, Slide 3, otherwise we've got some great video on our website, which talks about the different offices and locations on which we work. This is the West Wind Farm with Meridian Energy in Wellington is probably one of the nicest offices that we have in the business. So I'm sure our people [indiscernible] during the bridge construction job would probably argue with that, but were really proud on the locations that we work within. Going to sort of the numbers on Slide 4, as I mentioned, it's a record financial result, revenue up, EBITDA up, EBIT up, profit up, really strong margin performance for those who have followed us for a while whilst guiding the market to a 9% EBITDA margin performance this year. We had some contingencies tipped out at the back end of '23, which was -- took that a little bit high. But really pleasingly for me, you can kind of see the flow-through from EBIT and NPAT in terms of the margin flow-through, which is really, I guess, us starting to realize some of the benefits becoming a much more capital-light business as an overall group. I mentioned earlier dividends per share, up 13%. Earnings per share, up 15%. And look for me, absolutely highlighted the net cash position we've got to today. Look, I think the numbers tell just part of the story. It's the quality that sits behind the numbers and the quality of the business that we are today, and I really link that back to strategy. We've had a very clear strategy for a long period of time, and we're really doing everything that we said we were going to do in executing what's been a very, very clear strategy for the business. Moving to Slide 5, that really gives you some of, I guess, the key financial highlights over a bit of a trend. You can see the really positive track record of delivery and the sort of trend around EBITDA, EPS, dividend along with the terrific growth in EBITDA and cash conversion. Probably for the more detailed minded on Slide 6, it really sort of goes into some of the more key financial metrics. And look, I think there's not a metric on this page that we have not absolutely met and exceeded. And I think if there's one slide to take away from this entire deck, it's this slide, which really highlights the long-term track record of delivery for this business, but it also goes to the quality of the business that we are today. We're delivering on every metric. I think the 80% annuity/recurring earnings is a key highlight for us. And I think this is absolute evidence of the transformation of the company, but in some ways, doesn't do justice to the quality of the earnings that sit behind that and the quality of the business that we have today. I'll move to Slide 7, really in a bit more detail around the positive cash generation of the business EBITDA to cash conversion of 117%. We moved from net debt to net cash, really good free cash flow, it really continues our strong record of cash generation in the business and which really is a good underpinning of the growth of the company. We've got a really robust financial position from a balance sheet perspective, we're well funded for growth, good liquidity has given us the ability to do what we've done today, but also maintain a really strong balance sheet and flexibility as we move into the future. There is more details in the appendix on the FY '24 financials at the back of the presentation. So given how much we have to go through today, I'd encourage you to look at those post this call. I think overarching, if we move to Slide 9, it's underpinned by a very strong foundation, running a public company at times probably in the early days, we used to get worried a bit in terms of seeing our strategy and we're seeing our performance. But really, it's not the best we did or the smartest strategy that's driving our performance. It's our people and our culture, and that's really driving what we're doing today and living and breathing what we stand for, live for the challenge, smarter together, never give up and have each other's backs. So I break down ESG in a bit more detail on Slide 10. Focus on what we're doing in the space. And really, what we've tried to do here is to give some of the examples of that. Firstly, from an environmental perspective, we've implemented Sustain Life Software Platform to track our emissions. We've got different initiatives such as green concrete, local tree planting initiatives, solar powered facilities. And really, for us, it's about being real and making a difference. That's about having -- working with our clients, smarter designs, different innovative ways of doing things to really drive the sustainability of the planet we live on. From a social perspective, the Bugarrba Aboriginal Joint Venture is progressing really well with both [ FMG and BHP ]. We're on our third reconciliation action plan. And we're doing a lot of really good work in the social space from a partnership perspective and the local communities in which we operate, particularly proud of the work we're doing with Clontarf and Shooting Stars, which is all around driving development opportunities for the young indigenous men and women, and we really want to be a local good community partner into the future. From a governance perspective, continued focus and refinement of our risk management framework. It's a very robust framework. I think it's really I'd like to call out just the great work we're doing in the psychosocial space. It's not just an issue for industry, it's an issue for society and there's some really good proactive things that we're doing on that psychosocial perspective. I never like to call that -- safety always called the glass ball in business that you can never afford to drop. We continue to make great strides from a safety perspective. Our TRIF is at 3, which is the lowest level it's ever been. But every day, it's a new day, it's a glass ball that we can never afford to drop. A pretty quick summary of FY '24, but an absolute outstanding result for the business. We're in an exceptionally strong position. It gives us a really strong foundation and as it's now well paused to do what we've done today, which is to announce the acquisition of Diona. So before I get into the detail -- I'm on Slide 11 now, before I get into the detail on Diona, there will be a number of Diona people on this call. I'd really like to welcome them to the SRG Global family, really excited about the future and you're joining us. I will be around the business over the next couple of weeks to meet with you all, and it will be a very exciting future for everyone. I'll move to Slide 12, which really sort of gives you a bit of an overview of the acquisition. Diona is a leading end-to-end provider in water and energy markets. We've acquired the business through $111 million on a cash-free, debt-free basis. It's an implied EBIT multiple of 6x FY '24 earnings, very capital-light business, [ not a lot of dark ] in the business, and we've transacted well. From a funding perspective, we are doing an equity raise of $60 million that's fully underwritten. We're doing $6 million SPP and then the balance will be in cash and debt facilities. I guess, what will the business look like as we see there from a pro forma basis. In FY '24, revenues of just under $1.3 billion and EBIT of $84 million and circa 10% EPS accretive. It's marginal expansion from an EBIT perspective. It's going to give us terrific cross-selling opportunities, and we're maintaining a very modest gearing ratio of just under 0.3x net debt to FY '24 EBITDA. And I think that's really important measure on FY '24 numbers. And for us, it's about maintaining really strong balance sheet and having flexibility to continue to grow into the future. And we plan to conclude the transaction at the start of September. As also mentioned at the start of the call, FY '25 guidance is $125 million, and that includes a 10-month contribution from Diona. So Diona on Slide 13 to give you a bit of an overview of the business. They are a business we have tracked for some time. And look, in many respects, they've undergone a stream of transformation to ourselves in terms of the commercial model and really how they've grown their business, but been around since 1980, a family owned business, a leading end-to-end partner in design, engineering and project execution. It's all through long-term program and asset management agreements and is with full self-perform capability, which very much aligns to the SRG Global model, where we basically self-perform everything that we do. They play in 2 key end markets, water security and energy transition. Clearly markets have got significant tailwinds in front of them. They've got a really broad geographic reach, 100% of their work is East Coast by pretty evenly split between Queensland, New South Wales, Victoria and SA. A very client-focused, collaborative approach with long-term partnerships with leading utilities and government agencies, nearly all their work is with government initial agency providers, a lot of common and very complementary clients, a lot of common clients to SRG Global that we know today, but some also very complementary ones comes with a skilled workforce with a lot of engineering expertise, long-term track record of delivery and it comes with $1 billion work in hand. When you think about a business that's turning over just over $200 million, that highlights the visibility of work into the future that's secured. We sort of delve into why have we done this. We're a very natural owner for SRG Global as we move through to Slide 14. From a strategic rationale perspective. It really strengthens our position in water security and energy transition. They're a leading provider for 40 years of history, very embedded with utility and government agencies and playing into key attractive markets of water security and energy transition. Through complementary capability to SRG Global really adds that whole full-service program and asset management service and will unlock a lot of revenue synergies in terms of the cross-selling opportunity, which is a very strong part of the SRG Global culture, comes with a high-quality management team, led by [ Tom Melbourne and Lincoln Mark ] and the team. Everyone will transition with the business. This is not a cost synergy play. It's all about revenue synergy and growth moving into the future, really enhances our annuity recurring profile. It moves us to that 80-20 split, which has been a long-term strategic gain very much in line with our strategy. It comes to the 1 billion work in hand really some pipeline of more than $2 billion which is honestly, it's probably undercooked in terms of the real size of the opportunity, provide significant cross-selling opportunity and it's a financially attractive acquisition, circa 10% EPS accretive, pre synergies or cross-selling opportunities, pretty capital light business with CapEx less than 1% of revenue and really complements our capability in some very attractive sectors of both water and energy transition. As we move to Slide 15, it really highlights probably, I think, a fairly simple schematic, the core capability of Diona. It's a full-service program management business. From a water perspective, you can see that kind of full service across the different types of structure -- infrastructure in the water space and then from energy transition perspective, you can kind of see both from an electrical and gas perspective and a lot of this is in ground services and substation work. And in some ways, think of them as a connector style business, and it's a full suite of services and look in reality SRG do a lot in both these sectors as well. And I think the key thing here is these are critical services for our clients. This is not about watering the garden, doing the landscape and doing the laundry or catering. These are critical services to clients, which makes both the owner and us critical to them. If I move to Slide 16, it really highlights 2 things. One, the absolute unparalleled to end self-perform capability is quite unique compared to a number of competitors they play against. You can see the sort of level of detail on the collaborative nature and the deeply embedded nature that goes with that in terms of early engagement advisory work, community engagement, design and engineering, program management, delivery and asset work in the entire asset life cycle. It's deeply embedded, more than 96% of our work is with the utility and government agency providers and made a full program asset management agreements. This gives a little bit of a split of that, the makeup of that, 84% of it is cost plus or schedule of rates from certain fixed price elements. But you can see it's a really, really robust commercial model and a low-risk commercial model. I talked about being deeply embedded with clients. And if we move to Slide 17, I think it really highlights just the low-risk collaborative nature of the business you kind of say it's all under long-term agreements. You can sort of get a sense of the tenure that these -- that some of our key clients we have. And probably the really obvious opportunity here is they've got a very strong East Coast presence. And clearly, SRG Global has a broader footprint particularly opportunities in the West and New Zealand as well, which will open up opportunities both ways, certainly from a geographic perspective for Diona, but also I think some of the complementary clients that Diona has today. And I think with the tenure and visibility and collaborative nature of the work we do with our clients. So it puts us in an exceptionally strong position. So we move to Slide 18. We'll really probably touch on some of the key end markets. Clearly, these are -- when we're talking about water security and energy transition led a key growth markets. They are growth markets that we play in today. There's quite a bit of detail here. So I'll try and bring it to life. And SA Water is a really good example. We have an 8-year contract out to 2029, which is upgrading and renewal of their water mains, treatment plants, storage tanks and facilities. In the gas space, apa, an 8-year to upgrade and renew their gas mains part of the national mains replacement program, sort of energy space, Ausgrid which is a relationship that the owners held since 2006. Term contracts will around upgrading the network assets. They're clearly well embedded with clients on what are 2 very, very pivotal end markets for the owner. The next 4 or 5 slides very much on the market overview. You will have seen that in many different forms. So I really probably -- I think the key takeaway as we move to Slide 19 is growth, tailwinds and spend, and they are the key 3 messages of these 4 or 5 slides. I'm not going to go into the detail. But clearly, there's significant in spend in both water infrastructure and energy infrastructure as we move into the future. If we sort of delve down into a little bit more detail moving to Slide 20, you can kind of see from a water infrastructure perspective, some of the macro drivers of that population growth and climate change, urbanization, aging assets, technological advancements and you kind of see the growth trend in terms of spend. And just -- there's some very public market information in key clients as Sydney Water claims to spend $34 billion over the next 10 years, $9 billion over the next 3, and it really gives you an example of sort of spend coming up in that particular sector. And really, one of the things driving that, as we move to Slide 21, climate change is having quite an impact. Diona has got a very strong rural presence, nearly 2/3 of their business is rurally based and the extreme weather events are certainly placing pressure on these assets and really provides opportunity for Diona to provide their full program management and maintenance skills. Moving to sort of the energy space on Slide 22. Look, I think the key message is here, there's obviously an absolute push to renewables, energy security and modernizing existing networks and you kind of see the spend that's coming up. Multinet gas is a good example, $670 million up to 2028. Ausgrid $3.3 billion up to 2029. It really shows that growth trend over the next 4 to 5 years. So as we move to Slide 23, this is not a 3- to 5-year growth horizon, this is a 20- to 30- to 40-year spend and growth in front of us. Significant tailwinds provides a significant opportunity into very, very attractive sectors that we know and know well today and it provides further opportunity for us to take it into the future. I'll touch on some of the key pro forma financials now. We might click a couple of slides forward to Slide 25. You can see our pro forma revenue and EBITDA there, revenue just under $1.3 billion, $118 million EBITDA. I think just gives you a sense of the scale of the group that we are today. We've obviously called out $125 million for FY '25 in terms of guidance from an EBITDA perspective, that includes 10 months contribution for Diona not the full 12. We delve into some of the more detailed financial metrics, including from an EBIT perspective, being a very capital-light business on Slide 26. You see EBIT has moved from $65.6 million to $84 million on a pro forma basis at 28% uplift. It's an expansion from an EBIT margin perspective. SRG Global as a group does punch above its weight and the margins we start to get as a group and improves that situation, EPS accretive and circa 10% and maintaining very modest levels of debt of gearing net debt to EBITDA just under 0.3x and these are FY '24 numbers and that was all for us around continuing to maintain a very strong balance sheet into the future. So moving to sort of Slide 27, which gives you a little bit of a feel of the business mix. It's a very attractive business mix, probably a couple of key things I'll call out is the 80/20 annuity recurring earnings mix that you can see there in the middle row. I think from a geographic perspective as well in terms of the other business that we are today now as a combined group with 50% of revenue on the East Coast, 5% in New Zealand, 45% West, really well spread. I think you'll see that in a further slide in the deck really geographic footprint and opportunity that comes with that. That's a bit about Diona. Really excited about that. I think our ultimate focus in the first 3 or 6 months will be all around cultural integration and really sort of getting the business to operate. It's a really good performing business today and we'll be bringing into the family, in reality Diona talk our language. It will be very common language between our 2 businesses, and I'm really excited about the future of that business. To kind of move gears now to a bit more of the way forward as a company and what we are today, if we move to Slide 29. This is us today, a diversified infrastructure services business, and what we do is bring an engineering mindset to deliver critical services across the entire asset life cycle. I think the key here to really remind everyone on this call, it's the critical services that we provide and critical to our clients, which makes us critical to them, and what we want to be. Our vision is the most sought-after in what we do. It is mostly #1 market leader for us when clients have a challenge, a problem and opportunity, the first people I want them to think of when I pick up the phone is SRG Global, and that's making a complex simple for them. From a pro forma perspective of the group now, I think you can get a really good sense now on Slide 30 of the scale of the business with 4,000 people revenues pro forma circa $1.3 billion. You can sort of see the geographic split 80-20 mix from annuity earnings perspective kind of see the geographical reach that we now have as a business. Moving to Slide 31. We will report on 2 operating segments moving forward, Maintenance & Industrial Services and Engineering and Construction. That's really to align the profile of the business that we are today, and there's some more detail on that in the appendices. So delving into some of the key services that we have today on Slide 32. You can kind of see the core services that we provide a very diverse service offering. I think a couple of the key takeaways here is just the quality of the clients that we have today, and that's the diversity of the services and the sectors in which we play. Moving to Slide 33, which is our Engineering & Construction business. You can kind of see the core services that we provide. They are very specialist in nature, again the quality of the clients that we had in this space. And the lion's share of this work is very much in an [ ECI ] long-term partnership arrangement. They're almost like 4 more collaborative agreements as well, which gives us really long-term visibility in the engineering and construction side of the group. Slide 34, which is our strategy, almost we're bored -- boring putting up this slide in terms of we've had a very clear strategy for a long period of time. We're continuing to deliver against that strategy. And with the Diona acquisition, that takes us to that 80-20 split from an earnings perspective, which has been a key objective of ours from a strategic perspective. And for us, it's just going to be continuing to delivering against what's been a very, very clear strategy for a long period of time. I think Slide 35 really highlights the terrific platform that we have today, $3 billion work in hand, $8.5 billion pipeline, which has probably been undercooked in terms of the real size, gives us a terrific platform to really leverage the footprint that we have today. I think that's really driving what is significant momentum in SRG Global's and move to Slide 36. We've increased guidance to $125 million. You can see the strong growth trajectory from an organic perspective overlaid with the Diona acquisition, pretty being work in hand, really positive exposure to great sectors in water, defense, resources, transport and energy, that earnings profile of 80% annuity and the main reality in the transformation to diversifying infrastructure services will continue to deliver results. And for us now, it's head down bum up and is continuing to keep doing what we said we would do. And I think that's really the investment proposition of SRG Global when we move to Slide 36. That's end-to-end asset life cycle capability where we self-perform everything that we do. We play in very diverse sectors and geographies and I say that gives us a natural hedge that we're not waiting to any 1 client, 1 sector, 1 geography that gives us a very broad platform on which to apply our skills. We're highly scalable business and business model with experience, systems and structure to be a bigger business than we are today, and we continue to show that through the execution of the company. High level of the earnings profile, which make gives a lot of visibility and predictability for the future infrastructure earnings of the group, very capital-light investment profile with CapEx circa 2% of revenue, a really good high-yield dividend stock. And I think that's something that we've done really well over the journey is balancing that growth and dividend elements of business. Now, it's a really pivotal day in our journey today. I would like to thank shareholders for all the support that that's given through this journey. We feel like we're only getting started on where we can go. And once again, like to really welcome the Diona people and really thank all SRG Global people for their great efforts in the last 12 months. We've got a [ truly ] platform. It's about staying disciplined and focused, and we'll keep doing what we say we're going to do and building a company that I know we can be. There's a bit of detail post that in terms of the equity raising. I won't sort of go into any of that detail on this call but we want people to read, repost this call. So perhaps it's an opportunity now to open up for any questions, which Roger, you might host.

Okay. Thanks, David. There's a few questions that come through. So we'll just go through it one by one. So a couple of questions here around the EBITDA. So we talk about the EBITDA visibility for FY '25 on the guidance of $125 million. So what's -- what visibility do we have from an EBITDA perspective?

Well, I think if you call it [ 80-20 ] as a starting point before we sort of get into the Engineering Construction side. I mean, clearly, we've got very high levels of visibility in '25. Now we've come out with a very specific number early for the market. And I think it continues our track record of providing good -- clear guidance and delivering against it. So visibility is high.

Okay. Good. One on cash conversion, good cash conversion this year, 117%. How do we think about cash conversion going forward?

I'm not here to sort of provide cash guidance, 117% this year. And clearly, there was a bit of flow over from last year into this year. all I said look, this 80% is a good starting point, and it will sort of flex a little bit up and down from there. But look at cash generation, really going to look over the long cycle, and we expect to be -- continue to be a really good strong cash-generating business.

Yes. Okay. Thanks David. So again on Diona. $19.5 million that's EBITDA in FY '24, how do we think about synergies and the go forward?

Look, it's not a cost synergy at play. And a lot of the property, for example, is actually -- as they were working as clients' facilities look from a revenue perspective, and clearly, we've called out guidance for 2025. Look, in reality, we expect to grow that business very, very strongly over the journey and all things back and we should start to see some of that in '25 and really kick in, in'26, '27, '28 and beyond.

All right. Terrific. One around -- we talked about EBITDA margins as a group between 9% and 10%. How do we think about that in the go forward?

I think obviously, Diona is a very capital-light business and not a lot of data in the business and other called out in the presentation. It's EBIT margin expansionary. So clearly, it's -- really good EBIT margins are continuing to improve the profile of the overall margins of the group?

Right. Terrific. One specific -- one around lease repayments and where they're shown? So on the -- in e cash flow statements, they're shown within the financing activities section, and we do call it out in our cash flow statement in our investor deck of [ $12.9 million ]. So that's the number that around one Diona looks like an amazing acquisition. What rate do you think this business can grow under SRG's leadership?

Well, I think for us, we've continued to grow the underlying business and we got also circa 10%. And I think that would be a reasonable profile for Diona as well. I mean in reality we call base case for FY '25 and [indiscernible] to bring up business in, integrate it well, get it operating and part of the overall group. And to me, it's not about the first 3 to 6 months, it's about how we build and grow this business over the long term. But in reality, we're expecting to grow well into the future.

One around Diona's work in terms of the mix between infrastructure spend from a newbuild perspective versus existing asset maintenance, and I think it's a good mix between the two.

Yes, it's a good mix, but we have to probably move towards that asset maintenance elements, upgrades, renewables and maintenance work under program management framework.

I think it was important to emphasize it definitely with the capability, well placed to actually capture the transmission network upgrades that about to come.

I think if you look at some of the different things that we have a relationship with Transpower at New Zealand for more than 30 years and go about some of the other different businesses we play in. I'm pretty excited that finally, I'm going to talk to someone about Diona anchoring and they're going to be so excited as I am. And look, we do a lot in the water and energy space, tactically, look quite a bit in the maintenance from a renewables perspective. And look, I think there will be more and more opportunities. Our asset care is another great business. When you think about Diona services, lot of in-ground services, some of the biggest spends are more in that asset monitoring, inspection, testing, advanced nondisruptive testing. So really good opportunities for the cross-selling of that.

Okay. One around acquisitions. This is a general question on how do we make sure that this acquisition is a success, I guess?

Look, I think it's all down the culture. And it's on -- it's all about that's where things succeed or fail. And Tom and the team, really, really strong leadership team. I think we're a very natural fit for that business. It will create opportunities for people within the Diona group. And yes, that to me will be my focus.

Yes. Terrific. The next one is around revenue synergy examples. We kind of touched on this.

I think I probably touched on that enough.

So one around where Diona previously lived within a larger ownership structure, I guess, with other [ sister ] companies? And how do you think its performance can improve even further given it's now association with us?

Well, obviously, it's a family-owned business since 1980, then got taken over by Calibre and then reverse management buyout as the last of the assets that the O'Connor family was holding. For us, I think what does SRG do, it opens up a bigger footprint, perhaps a bigger balance sheet. I think as a combined, a combined offering. It really puts us up as an absolute key player in the space. So we're only on the pains to point out, this is a very, very well-run business. It's not time to walk in and help. And they know if they're doing -- They're running a really good business. They've done an amazing transformation. And so I think if we can add some things in terms of perhaps unlocking further opportunities in the broader group, but vice versa probably openings and doors that weren't open to this point in time.

Yes. All right, perfect. Just some commentary around Diona's past performance over the last few years.

Yes. Look, it's probably a business that's not that dissimilar to ourselves, more project-based business historically. And in the last sort of few years, it's really somewhat shrunk back to sort of change in the commercial model to start growing and made really good growth in the '23 to '24 cycle and there's significant further opportunity to go. But what I see was sort of revenue visibility and the kind of term that they have, it's -- they've got an amazing foundation on which to build.

Okay. One around, I guess, our specialist drill and blast business, which is a mining services division in the past. And obviously, it's not amalgamated between -- into the Maintenance and Industrial Services section. So how is the performance last year compared to this year?

Really strong performance. And I think it probably -- it is not a mining services business. It's specialist drill and blast and geotech, specialist drill and blast in resources, water and civil and geotechnical maintenance in civil and resources, terrific-performing business, well led by Nathan Steiner and team, a lot of good software with that particular business that plays primarily in the gold space with great clients but in terms of the overall profile of the group, and it is an industrial service that sits in the Maintenance & Industrial Services segment and is probably being pegged wrongly.

What was the process around acquiring Diona, was it a competitive process? And why are they selling now?

Yes. Look, I'm not going to go into too much detail on the process for those exclusive discussions for bringing this opportunity to us and executing the opportunity. And look, I think as I called out earlier, this is the last of 3 assets that were held [indiscernible] and Diona. This is the last of those assets and ultimately that's been under exclusive arrangement.

Yes. What's the share price for the $60 million equity raise?

You can probably take on that one...

$83 cents that one. Talked a bit about SRG commercial framework. Can you provide some color around Diona's commercial framework and how do we manage the risks, particularly within those sort of contracts at a fixed price?

Well, I might say, but Roger why don't you touch on it.

Yes. So I think it's important to note that all of -- almost all the Diona's work is actually secured a long to type agreements. And even the fixed price elements they are obviously secured within that framework. So you actually get a chance to work through the clients in a very collaborative manner to work through the profile it works, whether it be under whichever commercial framework it is. And I think to David's point, I think a great example of why that is the case is that the investment within the clients' offices where the Diona personnel are sitting with the clients to actually construct the program, to actually design the solution to actually come up with the program of works over the coming period, whether it be the next 6 months, 1 year, 2 years, 3 years is really important to know. And I think that's, again, making testament to the transformation and the journey that Diona has undertaken over the last few years. So very much a very controlled and disciplined environment. And I guess, very pleased to say that the discipline that you expect to see in the business from a reporting and from a controls perspective, we certainly saw as evident within the Diona team. Who are some of Diona's biggest competitors?

Well, some of the key players [indiscernible] Diona, UGL are probably some of the key players that they play against.

Yes. Under SRG's ownership and expanded balance sheet footprint what type of contracts can Diona compete or that it previously couldn't?

I think it just probably opens up more opportunities with the balance sheet that we have and the scale of the overall group which to me is going to give further opportunity for the Diona. I'd probably use the Water Corp. as a great example in the West which we've got very, very close relationships with and then we'll open up opportunity there. And we've probably got more balance sheet, flexibility as a public company to really grow and fund the growth of that business and under perhaps private ownership. .

All right, terrific. Will the recording of this presentation be available later on? Yes. The answer to that is yes. Have you been approached as a takeover?

Will not result, personally no, but no, we've not been approached for a takeover. Yes.

Okay. Well, that's kind of -- sorry, just I was reading through the list one by one. I think we covered everything off on that basis. So thanks, David, and thanks, everyone, for the call.

I wan to really thank -- once again, thank, everyone. It's a really exciting day and really exciting about what we've got in front of us. So thank you for calling in.

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