Welcome, everyone, to the call today for our FY 'twenty one results, a very pleasing set of results we'll talk about this morning. So welcome, everyone, to the call. I always like start with a bit about us on Slide 2, which is very much for our newer investors and people newer to the story. So who are we? We're an engineering led specialist asset services, mining services and construction group.
Think of this as a diversified industrial stock. Our operating model is end to end solutions across the entire asset lifecycle of engineer, construct and sustain. And what we want to be, our vision, is the most sought after in the fields that we play in. Others might say market leader, number 1. For us, it's being the most sought after in what we do.
If we move to Slide 3, a bit of a snapshot of SRG Global. Probably the key takeaways in this slide is firstly the board management holding of 12% of the company. It's a very linked with shareholders and outcomes. Probably other key things to note is revenue by geography. You can see the splits there of 44% on the East, 45% West and 11% Offshore from a revenue perspective, quite a good balance of revenue spread.
And probably the other key point to note on Slide 3 is our global workforce of 2,300 people. This time, 12 months ago, it was about 1800. So it sort of shows you the growth that we've achieved in the last 12 months. Before I get into the FY 'twenty one review, I really want to acknowledge our people, our team at SRG Global. It's certainly been a fairly challenging operating environment and a challenging world in which we're living in at the moment.
And what we stand for at SRG is live for the challenge, smarter together, never give up and have each other's backs. And our people have absolutely lived, breathed and embodied that in the last 12 months. So I really want to acknowledge them and thank them. I know there's a number of our people on this call this morning, and I'm very proud to be part of the SRG Group, which is a good segue into Slide 5, the executive summary of our year. Revenue up 4%, EBITDA up 61%, EBITA up 151%.
I think for me the most pleasing part of this from a financial perspective is the quality of the revenue, the quality of the earnings and the quality of the business that we now have. That financial performance is translating to really good cash performance, really strong operating cash flow. And we've gone to net cash of 12.2 from net debt at the end of last financial year of 8.4 which is a terrific achievement despite making a lot of investment in growth and working capital requirements in the last 12 months. We're well funded for future growth with available funds of 88,200,000 dollars plus an undrawn equipment finance facility of 27,700,000 and we've doubled our fully franked final dividend to 0 point 0 $1 per share, taking the full year dividend to 0 point 0 $2 per share, which is really delivering for our shareholders. We have record working hand of $1,000,000,000 that's up 41% from this time 12 months ago, but also have a really strong opportunity pipeline in excess of $6,000,000,000 in diverse sectors and diverse geographies, and I'll touch on that a bit more later on.
We've got annuity earnings profile of 2 thirds annuity in FY 'twenty one and beyond, and our long term strategy is on track, and we're well positioned for long term sustainable growth and I'll touch on that shortly. And we're not stopping here and we expect FY 'twenty two EBITDA to be approximately 15% higher than FY 'twenty one performance. And I think it's fair to say we're not satisfied, We're just getting started in terms of where we're going as a company and the growth opportunities in front of us. I think it's really on the back of us executing against our strategy, which is a good segue into Slide 6. It's executing the growth phase, which has all been around continuing to transition the business mix towards annuity earnings.
We've had a very clear strategy in place for a very long time, and we're just delivering and doing what we said we would do. Probably in my mind, we're a bit ahead of schedule from a strategic perspective in terms of how well we've managed to transition to that annuity earnings profile. It really does position us well for FY 'twenty two and beyond. But I think it's really good to see actions, performance meet with the strategic pathway that we're on as a company. So I think the execution of strategy is one element, but the key element is Slide 7.
It's underpinned by great people, our people who are the foundation of this business. If I look at this particular slide, probably the key takeaways, we have a highly skilled workforce, 2,300 people. As I mentioned, that's grown significantly in the last 12 months. And a very specialist workforce, which is allowing us to both access new labor and also retain key talent. Pleasingly, as we've grown the numbers of people, we've improved our safety performance significantly with a 31% improvement in Trufer, which is terrific.
I never like to celebrate safety results. I always call it the glass ball in business that you can't afford to drop. But it's pleasing to see as we've continued to grow that we're really managing the safety and well-being of our people as well. Diversity is represented in many forms, and we are a diverse business. I guess we're highlighting here the gender diversity of SRG Global from a corporate perspective, pretty evenly split between male and female on the operational side of the business, a much more male dominated workforce, traditionally male dominated industries.
And we're looking for new and different ways of attracting more female talent into the group. From a social and community engagement perspective, we do a lot of work with our local communities from a development perspective, from a training perspective, from a sponsorship perspective, but also from linking outcomes particularly around safety initiatives with donations to the different foundations of which we're a part of. So, local communities in which we operate are very important to us and we're a really good responsible corporate citizen and contributing to those communities. We established an Aboriginal joint venture for scaffolding services in the last 12 months called Begaba. I think it's the first of its kind in Australia for scaffolding services.
It's a fifty-fifty joint venture with the Namal people in the Pilbara. For those that are wondering what Pagaba means, it means country in traditional Namal language. I'm really excited about this joint venture in terms of the future opportunities in front of us. We aim to be a good business with good governance. We're particularly focused on the supply chain governance in the last 12 months around modern slavery.
There's a lot of good work we're doing in that particular space. I think from an overall people perspective, we've made some really terrific strides in my mind in the last 12 months culturally. And if you got good people, you've generally got a good business. And the reality is you're only as good as the people you have. And we've got a terrific attributable level of talent in the business, and we're all working in the one direction.
Good strategy, good people translates to good financial results. And Slide 8 is, I guess, a snapshot of the FY 'twenty one financial performance. A really solid set of numbers. Probably on this slide, I really just focus on the margin element from a percentage perspective. We go from left to right.
Overall, I think probably the key thing to note is the EBITDA percentage margins increased to 8.3% from 5.6%, which is a terrific effort and improvement in the business. If we break down the individual segments, Asset Services, really solid performance in the last 12 months, which I'll touch on later. EBITDA margins of 11.8%, very much in line with historical levels. And I think that's really pleasing given the level of new contracts that we've won in the last 12 months. We're not buying work.
It's about adding value through innovation, technology and smarts. The mining services business showing exceptional performance, a really disciplined growth, EBITDA margin of 22%, really high utilization levels, which I'll touch on more in a moment, and some really good successful startups in the last period with some of our key clients. On the construction side of the business, which is civil engineering and specialist building, a really improved performance in FY 'twenty one, particularly in the second half. Our EBITDA margin increased to 6.5%. For those of you with good memories, in the first half, our EBITDA margin was 4.8%.
So really and I mentioned that as we exited Structures Victoria and really have focused on key clients, the margin would improve, and we're seeing good evidence of that, which I think a bit more runway to go. From a corporate perspective, corporate overheads of 2.4% of revenue, pretty low levels. We think there's further scope to leverage that. We think we can add $200,000,000 to $300,000,000 more on the top line without significantly increasing our corporate costs. So we think there's further leverage opportunity there.
So look, a really pleasing financial performance. And if we move to Slide 9, that's translated to really good cash performance, really generating positive operating cash. Our EBITDA to cash conversion was 130%, which is a terrific achievement in the period. And we're really focused on working capital management, converting WIP to cash, getting our payments in on time. And I think it's been an exceptional effort.
And in some ways, the understanding of cash and how we generate cash runs far deeper in the business now in terms of that level of understanding. And that's been particularly important because we've grown significantly in the last 12 months. And we've had to put a lot of work and capital in as starting up all these long term contracts. So that focus on cash has been particularly important for us. So I think we've generated some benefit if we've exited certain businesses and the unwinding of that working capital as well.
Now we've continued to invest capital for growth of $78,300,000 of CapEx in the period if we start up a number of new contracts, which I mentioned in the slide. Really good focus on continuing to pay down debt, lease payments through ASB 16. And we've doubled the dividend to $0.02 per share for the year, so just under $9,000,000 worth of dividend payments in the period. So look, a really good performance from a cash perspective, a good financial performance. And what that gives us is a really robust financial position on Slide 10, really strong balance sheet, available liquidity of $88,200,000 which is comprised of $46,200,000 cash in hand and undrawn working capital facility of $42,000,000 As I mentioned earlier, we went to net cash of 12.2 from a net debt of 8.4, which is a more than 20,000,000 improvement in the last 12 months.
We've got plenty of capacity to grow with plenty of bank guarantee and bonding facilities, which have been highlighted there. I think the other key point to note from Slide 10 is from a debt perspective, the lion's share of our debt is equipment finance debt. So look, this business is in a very, very robust position from a financial and balance sheet perspective, which is terrific because we intend to continue to grow, which is a good segue into Slide 11. And we have a very strong platform for growth. As I mentioned earlier, we have a $1,000,000,000 in hand, which is up 41% on this time 12 months ago.
We have a really good pipeline of $6,000,000,000 of further opportunities, and we're not stopping here. And what I like about our business now, it's a very balanced business in terms of annuity underpinning type work and then more project based opportunistic growth. And I think that's been the strategic shift that we've made in terms of pure construction companies. At times, you can feel that you need to feed the beast and you have to just keep chasing your tail to get more work. But for us, being a very balanced business now with twothree annuity earnings, we can be very selective and targeted on that sort of more construction engineering based work.
I want to probably switch gears a little bit now in terms of the operating segments of the group. Firstly, starting with Asset Services on Slide 13. I think if there's one key takeaway from this slide, it's the quality of the client base. It's probably something we undersell at times. We have a very much a blue chip Tier 1 client base that's valuing what we do and it's opening up more opportunities for us.
And that's from an Asset Services perspective, that's a terrific recognition of where we're going. If we move to Slide 14, in terms of Asset Services year end review, it's had an outstanding year. It's the largest growth and largest earnings segment within the group. We have a really strong operational and financial performance. I think if there's one key takeaway from this slide, it's the tenure of the new contracts that we've won.
And you can see the quality of the client base, but look at the tenure of the contracts that we secured, which is a terrific endorsement about where we're going as a company in the future that's in front of us. It's not a silver bullet while we're winning this work. It's really off the back of strong relationships, delivering for clients that's giving us not only repeat work but new contract opportunities. I think there's no better endorsement of what you're doing than winning new contracts and additional contracts with existing clients. There's a huge focus on innovation, technology and particularly data and data analytics to differentiate ourselves from the field.
And I guess it's this entire formula or recipe that's really driving our success in this area. We've established the GARBA, as I mentioned earlier, and I'm really looking forward to reporting on our progress over the next periods. There's a key takeaway from Asset Services, it's tenure. Our Mining Services segment, again, highlighting the quality of the client base that we have, an absolute blue chip client base. But probably the key thing for me with our Mining Services business is everything we do in mining services is production related.
And I think that's really important for everyone to understand. There's construction and exploratory type work. Everything we do is production based work. And that really sets us up well for the future. So moving to the year end review, really strong performance from our mining services business, excellent asset utilization in excess of 90%.
Now we're not a company that will speculatively go out and buy kit, park it on the fence and try and find work. We run at high utilization levels and really focus on really driving our assets and driving them well. Our key commodity exposure is gold and iron ore, which are very good commodities to be in, particularly when you're production based services. We've continued to invest in the fleet, both from a growth perspective and also a sustaining capital perspective as well. And we've continued to focus on innovation, high precision GPS, data analytics, semi autonomous remote control drilling.
But probably one thing I really want to highlight is Orbix, which is our bespoke data intelligence software that we've developed in house at SRG Global. It's now fully integrated both internally with our clients' system. And what it's really driving is good decision making. This is predictive intelligence software. So not only does it give us insight into what's happened, gives us insight into what's going to happen, which is highly valuable not only for ourselves, but more importantly for our clients in terms of making good decisions.
And that's really driving good performance for our clients and good performance SRG Global in the mining services space. We do anticipate further growth both with key existing clients and key sites. There's also a really good pipeline of new opportunities in the mining services space in that drill and blast and geotechnical space. But we will be very targeted. And I think if there's a key takeaway from mining services, it's really around that long term partnerships that we have and how integrated we are with our clients.
The 3rd operating segment is construction, which is breaking down into civil and engineering and specialist building. Again, you can see the quality of the client base. In civil and engineering, it's primarily government and government bodies in that transport and water space. And from a building perspective, it's really from a building perspective, it's really key blue chip Tier 1 clients such as Multiplex and Lendlease. If we move to the year end review on Slide 18, from a civil and engineering perspective, really solid performance in Australia, really robust pipeline of government opportunities in that dam bridge and tank space.
We successfully scaled back our operations internationally in the period in reaction to COVID. And we've really set the business up now that we'll target projects globally from our Australian base. We have the civil engineering hub here in Australia. We'll target projects globally in that dam bridge and tank space from Australia and not sort of double up in terms of that resource base that we have. We've had really high demand for the SRG proprietary and engineered products in the period.
This is very much a growing part of the group and we see some really exciting growth opportunities for the SRG Products business moving forward. On the Specialist Building side of the business, our focus here is solely on key repeat clients such as Multiplex and Lendlease and others. On the Specialist facade side of the business, we had a really strong FY 'twenty one, a significant level of work in hand. I think, Roger, it's the highest level of work in hand that we've enjoyed for this particular business. And a really good pipeline of major opportunities over the next 3 to 4 years.
It's highly visible what the future looks like. The Structures West business performed really well in the period, a really solid level of work in hand and a good pipeline of growth opportunities. We've dipped our toe into some other sectors such as defense and now we can really see an expanding sector opportunity for this particular business, but it's been a really good performer in the period. As I mentioned earlier, we successfully exited the Structures Victoria business, which is primarily in the first half. Look, I think if there's a key takeaway from our construction business, it's really we are delivering world class engineering projects and landmark sites.
And we'll be very targeted and really stick to things that we're good at with clients that we like doing business with in geographies that suit our operational model. I always like to link back to strategy in terms of where we're going as a business, and we'll keep doing what we said we're going to do from a strategic perspective. And that's all around building the most sought after business in our fields of expertise. We are very much in the growth phase of our strategy, which is underpinned by 2 thirds annuity earnings, and we'll slowly morph into the leadership phase of our strategy. We'll be a 0 Harm and ESG industry leader and a recognized employer of choice, a key partner of choice in our specialized fields, consistent above market returns for shareholders.
We will look at selective strategic acquisition, opportunities that complement us either from a capability perspective or a footprint perspective, but underpinning this will be an earnings profile of 2 thirds annuity. And I would argue that we're well on the pathway of that leadership phase in conjunction with the growth phase of which we're on at the moment. Looking more shorter term over the next 12 months on Slide 21, from an operating segment perspective, SSS is delivering step change growth in diverse sectors with blue chip clients. Mining Services is operating in high demand, high quality growth commodities, primarily gold and iron ore. Construction is positively linked to government infrastructure stimulus programs.
And internationally, we'll focus on special civil engineering opportunities in that dam bridge and tank space. That's very much more a medium term play for us. From an overall business perspective, and I really touched on most of these points already, we expect FY 'twenty two EBITDA to be approximately 15% higher than the FY 'twenty one resolved. And I think in simplistic terms, if you take the second half run rate and annualize it, we're pretty much there, hence the level of confidence that we have in calling out the future. We've got regular work in hand of $1,000,000,000 and a really good pipeline of opportunities in excess of $6,000,000,000 in really positive growth sectors.
Supporting that is a really good liquidity and balance sheet position to support that growth and funding requirements. We have an earnings profile of 2 thirds annuity in FY 'twenty two and beyond, which makes us a very predictable business as we move into the future. And what we'll do is continue to do what we said we're going to do, and that's continuing to execute what is a very clear strategy, which has us well positioned for long term sustainable growth. But we have significant organic opportunities to grow this business over the next 3 to 4 years, which is a good segue to close with the investment proposition of SRG Global. We have end to end asset lifecycle capability and an absolute market leader in our fields of expertise.
We play in diverse market sectors and diverse geographies, which gives us both very much a broad platform on which to play, but also a natural hedge as different industry cycle. That diversity gives us that natural hedge. We have a high level of annuity earnings profile in the group, which in time will lead to higher multiple valuations. This is a highly scalable business model where we have multiple, multiple levers to grow this business as we move into the future. We're very much a capitalized investment profile, which I think is really important to understand as a specialist services business and we're a dividend paying stock, paying off good yields that are fully franked.
We're probably in the strongest position that I've ever been in my time with SRG Global. There's absolute momentum in where this business is going, and we're well on the pathway to being the business that I know we can be. I really want to thank our shareholders for their support over the last 12 months. Now we're just getting started in terms of where we're planning to go on the runway in front of us. But again, I want to really acknowledge our people.
Terrific performance in the last 12 months. We are really working exceptionally well as a team, and I'm very excited with the future in front of us and really proud to be working with the great people at SRG Global. So thank you.
Great. Thanks, David, for that presentation. So we're on to the question time at the moment. So excuse me.
I will apologize. Roger is feeling a little bit under the weather, but he's
I'll push on.
He's soldering on.
So thank you for some questions already on the platform. So the first one has come probably through. Can you elaborate on the difference between the annuity and the recurring earning streams?
I think annuity occurring is sort of 1 and then same in any respects. Annuity is more just long term contract style work, multiple year contracts where it's just continuing to come through the door where it's probably I guess the question is more about annuity and current which
is the same. Yes.
Project based earnings is more I guess civil engineering and building work with project based for an individual project as opposed to a long term contract with a customer.
Yes. And I suppose the key takeaway again is that we're twothree, onethree, twothree in the annuity and recurring earnings space and onethree project space.
Yes.
All right, terrific. Question on dividend policies. Is there a set dividend policy for ESNG? And traditionally, what we paid and what do you see that going forward into the future?
Yes. We don't have a set policy per se, but traditionally, we've paid about 50% to 60% of earnings. And if you look at this year, pre amortization of customer contracts, which is, I guess, a nil sum gain, they're about 57%, which is kind of in line with where we've historically paid and sort of given the good balance sheet, the good cash generation. Certainly, I think we want to be a good growth stock and a good dividend paying stock. And whilst there's no set policy sort of at 50% to 60% range is sort of being where we've historically been as a company.
All right. Thanks, David. Question here on M and A and inorganic opportunities. Are there any near term or potentially imminent M and A opportunities currently being assessed?
I wouldn't say sort of imminent. I mean, from our perspective, we've got significant organic opportunities in front of us over the next 3 to 4 years. And if the right thing is there that sort of complements us either from a capability or geographic perspective, we'll certainly look at it. And there are probably areas, asset services, particularly on the East Coast of Australia is one area. That's sort of whole monitoring sort of inspection technology type area is another.
It's of interest for us, but it's certainly not anything imminent at this point in time.
Okay. Question here on I think you can summarize this to be potential wins and contract wins around on the horizon. Are there any contract wins to look out for?
Look, I think all 3 operating segments of the group have really good opportunities in front of us. So we expect to win in all three categories over the next period. And what I will also say is that the contracts that we've won, particularly in that asset services space, you're generally not operating at your optimum in the 1st 12 months. So we certainly see opportunity there to continue to improve the profit performance of those contracts in year 2. So there are multiple ways that we will grow the bottom line earnings for the business.
Okay. And there's a few questions here around labor, cost escalations, potential price rises and in light with in relation to our contracts. I guess, in summary, there's a few of them around here. How are we managing access to labor and labor potential labor cost escalations, wage inflations, pressure, given quite a lot of commentary in the market of late?
Yes, obviously, it's clearly been a pretty topical item in the last 6 to 9 months in particular. I think the border restrictions aren't making it easy, but we've really shown in the last 12 to 18 months that we can manage that and manage well from an access to labor perspective. In terms of costs and cost escalations, all our contracts have rise and fall mechanisms in them, and that gives us that level of protection. And without going into sort of too much detail, the lion's share of our contracts, the actual labor element is linked to the labor cost on that particular site. So it gives very, very strong protective mechanisms.
But certainly the rising four mechanisms gives us that protection.
Question here on international work, I guess. International work, when do you think SRG will be able to work effectively internationally again?
Oliver, for us, we've to me, we're continuing to run out certain projects internationally as we speak. And for me, it's a medium term play. We're not actively targeting new work internationally that would start in the near term. I think to me, it's a medium term play and it's one of the things I really like about our business is that the different levers to grow this business over the next 3 to 4 years are significant. I'm not really factoring in any growth in the international side of the business in FY 'twenty two and our outlook.
So it's more a medium term play. I think that's one of the strengths of the business. We are a global business. We've been operating global for more than 30 years and the special skill base that we have has traction in the global market, particularly in that dam bridge, the tank space. And it's one that in that medium term, when the markets open up and the risk profile is appropriate for us, then we'll start actively playing internationally again.
And probably without offending our New Zealand cousins, New Zealand is obviously part of the international pretty much all the probably nearly all the international business as we speak. So I'll probably treat New Zealand slightly different to the rest of the world.
It is in the state of Australia. So that's a worthwhile to consider it that way.
We do have New Zealand shareholders, Roger. I'm not upset on that.
And probably one, maybe slightly unfair to present the question, but I'll ask it anyway around share price and multiples. Around our share price rise in the last 12 months, it's a substantial rise. Where do you think we are valued as at this point in time? And what do you think the runway hit is?
Well, I think from our perspective, when you look at where we're trading, where we're trading today, it's effectively about 4x FY 'twenty two EBITDA. I mean, historically, SRG has traded about 8 times. I think if I think of a perhaps relevant peer like a monadelphous, the earnings were 9 to 10 times EBITDA where it's 4 in terms of FY 2022. So I think there's a significant runway in front of us both from the growth in earnings but also in getting the right multiple attached to our business. So I'm not one here to give share price.
I think it's been a fairly muted reaction to the performance today. And I think from us, we're not going to give anyone share price, but share price is price. But to me, there's no way we value like this in 12 months' time. I think we've huge runway in front of us. At the end of the day, the share price will be what the share price will be.
What we're focused on is running the business. That's what we've done historically and that's what we'll do in the future. And what I will say is the business has never been in a strong position. The strategy is really clear going forward. There's huge opportunities to grow this business in multiple ways.
And the scoreboard will look after itself at the appropriate point in time.
Yes. I couldn't agree more. Well, I think that covers it off just about all the questions I would ask today. I know it's a busy day for everybody. So, Mike?
Yes. I appreciate people taking the time to jump on the call and really looking forward to delivering what is exciting an exciting future in front of us. So thanks for the support.