Monadelphous (MND) struggles with worker shortage
FY21 Results: MND reported revenue of $1.95bn which is ~6% above expectations however profitability was a miss given margin issues, NPAT of $47.1m was a ~13% miss to consensus. The FY21 DPS of $0.45 was inline while guidance is now for lower revenue in FY22 – the market is positioned for a similar level. They talked to ongoing skill shortages with a review of their attraction & retention practices i.e. more money to keep good talent. We had NRW Holdings (NWH) report last week and rally ~20% on signs of better margins however MND have not enjoyed the same fate today. It’s clear that winning work is not the issue, fulfilling it is.