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Highlights

  • In FY24, revenue of LYL increased to AUD 348.9 million, up from AUD 327.6 million in the prior year
  • In FY25, revenue between AUD 345–360 million is forecasted, with NPAT in the range of AUD 40–45 million
  • LYL shares closed 2.45% lower at AUD 9.96 apiece on 9 December 2024

Lycopodium Limited (ASX:LYL) is an Australia-based company that offers integrated engineering, construction, and asset management solutions. The company handles complex, multidisciplinary projects by providing feasibility studies and advisory services across the resources, rail infrastructure, and industrial processes industries.

In the financial year 2024 (FY24), the company maintained the momentum built in FY2023, successfully delivering a high volume of projects globally across its core sectors: resources, rail infrastructure, and industrial processes. During the reported period, the company reported a revenue of AUD 348.9 million, up from AUD 327.6 million in previous corresponding period, driven by increased revenue from contracts with customers, interest income, and other income.  Net profit after tax (NPAT) reached AUD 50.7 million in FY24 and EBITDA increased to AUD 77.1 million.

In FY24, EBITDA margin improved to 21.2% from 20.5% in FY23 and asset turnover ratio improved to 1.61x from 1.05x in FY23. However, accounts receivable turnover ratio dropped to 3.6x from 4.2x in FY23.

Outlook

The long-term demand for minerals and metals essential to the energy transition remains robust, driving global investment in supply expansion. Gold production is set to rise as new projects and mine expansions come online, while iron ore demand is expected to grow steadily, fuelled by infrastructure investment in China and India's expanding projects.

In Australia, railway construction and maintenance activity are projected to remain strong, supported by significant publicly funded initiatives. Additionally, the Industrial Processes sector is poised for growth through opportunities in domestic manufacturing and emerging markets related to the energy transition, including waste management, recycling, water and wastewater, and hydrogen development.

In the long-term, the company expects demand to remain strong on the back of domestic manufacturing, resources, and railway construction sectors. Moreover, the transformation of the international energy sector from fossil-based to zero-carbon sources is expected to bring opportunity and innovation in the advancement of new systems that can operate on low carbon energy sources, whilst maximising waste recovery and reuse.

In FY25, the company’s revenue is expected to fall in the range of AUD 345 – 360 million with NPAT of AUD 40-45 million. In 1HFY25, the company plans to declare dividend of 0-15 cents.

Share performance of LYL

LYL shares closed 2.45% lower at AUD 9.96 apiece on 9 December 2024. LYL’s share price has declined by almost 16.16% in the past three months and has dropped by almost 5.14% in one year.

52-week high of LYL is AUD 14.30, recorded on 31 July 2024 and 52-week low is AUD 9.89, recorded on 21 November 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 09 December 2024. The reference data in this report has been partly sourced from EODHD/Others.