Pushes in infrastructure development across Australia’s major cities is driving demand for scaffolding and support with product hiring specialists Acrow (ASX: ACF) reporting a record month of hire contract wins in March, totaling $5.9 million for the month.
The record month tops the previous held in November 2020 by 18% and continues a purple patch for the construction services Company which brought its March Quarter contract wins to $11.2m, a 50% increase on the previous corresponding period.
“The exceptional March quarter performance of secured hire contract wins has set the Company up for a tremendously strong start to the new financial year,” said Acrow CEO, Steven Boland.
“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.”
Highlighting the increased demand for services, Acrow’s three biggest months of contract wins have now come within a space of five months – November 2021, February 2021 and now March 2021.
Queensland established itself as the standout market for Acrow which leases scaffolding systems to large construction and civil infrastructure providers across Australia. In total, the Company employs approximately 250 staff across six States that service more than 1,300 customers.
“I expect 1Q22 will see this momentum continue as we reap the benefit of the great successes we are achieving in securing new contracts,” added Boland.
The surge in hiring wins was reflected in a market update issued in March where Acrow increased its FY21 market guidance to $23.5m – $24.5m, a notable increase on the $19.4m reported for FY20.
Involvement in notable projects responsible for the market guidance update include the Bruce Highway upgrade in Queensland, Sydney Metro Rail, Tweed Heads Hospital and Chinatown Mall Commercial Tower in Brisbane.
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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