Best known in construction circles as one of the longest operating providers of scaffolding and scaffolding services, Acrow Formwork and Construction Services (ASX: ACF) is set to embark into the lucrative world of Jump Forms where they have hit the ground running with two immediate contract wins.
While scaffolding has long been the most reliable and cost-effective formwork for construction, the emergence of highrise buildings has led to the emergence of Jump Forms – a jacking system that lets builders construct a floor (starting from the top) and then lift it and commence work on the immediate floor underneath.
Comparatively, scaffolding is built from the bottom floor, upwards.
“We have had a keen interest in the Jump Form market for some time and we recently entered into a 10 year exclusive licensing arrangement within Australia, with New Zealand company Jacking Systems, whose proprietary system is one of the most technically advanced, highly re-usable and adaptable Jump Form systems available in the Australian market,” said Acrow CEO, Steven Boland.
Entry into the Jump Forms market has kicked off with two contract wins, both for construction projects in Queensland, valued at $4m to Acrow.
“I am very excited by the prospects for this new division as we open another significant new revenue channel in one of the most important formwork areas on any project,” added Boland.
“I believe this is one of the most significant developments in our business over the past few years. A big well done to our team who have delivered on this opportunity.”
Revenue generated from these two new contracts will be realised in Acrow’s FY 23 financials with the Company expecting to announce their FY22 results on 24 August.
Following a number of impressive contract wins in the March quarter, Acrow issued a profit upgrade notice in April where the Company expects FY22 net profit after tax to fall between $16.3 – 17.3 million. At the midpoint, it would represent a 93% increase on the previous year.
Acrow currently operates in 10 locations across Australia and owns over 60,000 tonnes of formwork and scaffolding products that gets contracted out to construction projects of all sizes.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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