The Acrow Formwork and Construction Srvc Ltd (ASX: ACF) share price is running higher on the back of a new record of secured hire contract wins. At the time of writing, the construction services company's shares are up 2.74% to 38 cents.
Record contract wins
Investors are scrambling to pick up Acrow shares after the company updated the ASX with its latest performance report.
According to its release, Acrow advised it has achieved a record month of secured hire contract wins. During March, the company also attained $5.9 million in new hire contracts. Furthermore, this figure represents a 92% increase on the prior corresponding period. In addition, this was an 18% improvement on its previous best month record accomplished in November 2020.
Acrow highlighted that the 3 largest months in terms of new hire contracts have occurred within the past 5 months.
For the March quarter, the company reported $11.2 million in new contract win, reflecting a 50% jump on Q3 FY20. Underpinning the strong result, Queensland saw strong growth across all sectors.
Acrow stated that the robust March quarter performance has indeed set itself up for a strong start to the financial year. June hire revenue is set to come in around $4.5 million which is likely to lead to another exceptional result. The company however decided to maintain its earnings before interest, tax, depreciation and amortisation (EBITDA) guidance for FY21. It is forecasting EBITDA to come between $23.5 million to $24.5 million.
What did the CEO say?
Acrow CEO, Steven Boland hailed the robust performance, saying:
I expect 1Q22 will see this momentum continue as we reap the benefit of the great successes, we are achieving in securing new contracts. The results we are seeing are a testament to the innovative, customer solutions focus of our market-leading engineering team as well as the strong ability of our sales teams to convert opportunities into revenue.
Acrow remains very well positioned to benefit from the substantial infrastructure development program earmarked over the next 3-5 years in Australia and most likely beyond.
About the Acrow share price
The Acrow share price has gained over 50% in the past 12 months but is relatively flat year-to-date. The company's shares are within sights of its 52-week high of 41 cents reached in early December.
Based on the current share price, Acrow presides a market capitalisation of roughly $83.9 million, with 222.8 million shares outstanding.
