Johns Lyng (ASX:JLG) upgrades revenue forecast for FY22

Johns Lyng (ASX:JLG) has upgraded its revenue forecast by 8 per cent to $867 million from its guidance in February, excluding reconstruction experts. This represents an annual revenue growth of 52.5 per cent from the financial year 2021.

The building services provider said the uplift was due to the ongoing strong demand for the group’s core business as usual services, and an increase in catastrophe activity with the floods in northern NSW and south-east Queensland a main contributor during the current financial year.

Earnings before interest, tax and amortisation (EBITDA) has also been upgraded by 5.4 per cent to $83 million from the $78.7 million in February. This represents EBITDA annual growth of 57.8 per cent from the financial year 2021. This also includes the initial mobilisation costs for the south-east Queensland and northern NSW flood work.

The company is set to provide further guidance in respect to the 2023 financial year outlook in late August. This would include an update on the catastrophe work which is still being quantified and continues to grow.

Shares closed at $5.67 yesterday.