The Downer EDI (ASX:DOW) share price popped today after this

The Downer share price is moving around today following release of the company's HY21 results. Here's what we learned from the report.

| More on:
hand on touch screen lit up by a share price chart moving higher

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Downer EDI Limited (ASX: DOW) share price popped this morning after the company released its half-year performance report. 

At the time of writing, Downer Group is approximately 2% higher trading at $5.45.

Downer EDI provides services to customers in transport, utilities, facilities, engineering, mining,  construction, and maintenance (EC&M) in Australia and New Zealand. 

The company employs approximately 52,000 people across more than 300 sites.

How did Downer EDI perform during HY21?

Downer experienced a 10.6% total revenue fall during the 6 months ended 31 December 2020. Total group revenue was $6.1 billion.

Statutory earnings before interest and tax also took at 10% hit falling to $180.4 million.

The company reported a $350.2 million cash flow which is significantly higher than the $4.5 million gained in the previous corresponding period (pcp).

More than half of this result was achieved via the acquisition of the remaining 12.2% interest in Spotless Group Holdings.

Compared to the pcp, Downer managed to save $675.1 million in total expenses which is a 10.6% savings.

Downer's earnings before interest, tax, depreciation and amortisation (EBITDA) for the period was $195.8 million.

The company will pay an interim dividend of 9.0 cents per share, unfranked (14.0 cents per share unfranked in the pcp), payable on 25 March 2021 to shareholders on the register at 25 February 2021.

Outlook

Downer will continue to focus on its Urban Services businesses. This involves working with companies that demonstrate strength and resilience. In addition, offering attractive medium and long-term growth opportunities.

Downer is also focussing on possessing a high proportion of government and government-related contracts.  Further, Downer offers a capital-light, services-based business model to support low risk and predictable revenues. 

As previously announced throughout the reporting period, Downer has entered agreements for the sale of its Downer Blasting Services, Spotless Laundries, and Open Cut Mining West businesses.

Downer concludes that there have been no extraordinary matters or circumstances that have arisen since the end of HY21 that have significantly affected or may significantly affect operations.

Over the previous 12 month period, the Downer share price has fallen close to 27%.

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »