- Market capitalisation – $94 million
- H1 FY2025 net profit (NPAT) – $5.1 million
In early Jan, announced sizeable contracts
– in the Central West Orana Renewable Energy Zone: ACEREZ, a consortium of Acciona, Cobra and Endeavour Energy has awarded Mayfield the contract for the supply and installation of 26 Prefabricated Protection Buildings for the CWO REZ. The contract value is approximately $20 million.
The CWO REZ will be a modern-day power source that supplies safe, reliable, and affordable grid-scale energy over the operations phase and beyond. The CWO REZ will connect new renewable generation and storage facilities to the National Electricity Market. Design will commence in January 2025, with construction commencing from Q4 2025 through to Q2 2027.
– Other sectors; A total of approximately $15 million in other new contracts has recently been added. These include the supply of switchboards to NextDC for the M2 Data Centre, the expansion to the port and mining operations for mining companies and a Telecommunication Relocation contract for the Lotus Creek Wind Farm for CS Energy.
Late March , more work brings work-in-hand to $108 million, extending into the 2027 financial year.
– contract for an amount of $20 million to deliver 18 modular power distribution centres in Victoria for a major Data Centre operator (operator). The 18 units will be delivered in the 2026 year. Revenue from the contract will be recognised over each of the years ended 30 June 2025 and 2026.There are no conditions precedent in the contract.
– Other sectors:
A total of approximately $3.2 million in new contracts with a number of customers has been recently added, consisting of $2.2 million for switchboards and switchrooms, plus $1 million for telecommunications projects in the mining, renewable energy, and government sectors. These projects will be delivered through the 2026 financial year.
A recent dividend of 1c ff came with a one-off special dividend of 5.3c f.f. due to a substantial cash surplus exceeding operational requirements. In their words, “the decision reflects Mayfield’s exceptional financial performance and its confidence in its ongoing growth.”
Organic growth appears to be managed without demand for extra capital; growth in share count (last 3 FYs) has been limited to 2.3% p.a.
A commentator noted Mayfield Group holds significant deferred tax assets on its balance sheet. ” As such, its tax is currently a non-cash expense and this could be a source of hidden value given the board’s track record of paying out dividends when possible.”
With a P/E close to 18 and the group dependent on lumpy short to medium term contracts, the ability to win new profitable work will drive the share price. Certainly, the sectors they operate in are seen to continue to grow.
Mayfield is confident in its prospects and remains committed to its Australian manufacturing and technology-driven strategies.
This is an interesting statement; given the long term nature of their customers’ activities and need for reliable equipment, it would appear to be a moat of sorts.
