Why is NRW Holdings falling?
Hi James and team, NWH has been on a major slide lately, with no recent news or apparent explanation. Could you please comment. Cheers Stuart.
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Answer
Hi Stuart,
MM continues to hold NWH in our Growth Portfolio, as subscribers know the market was clearly disappointed with its half year results delivered last quarter with the 44% lift in revenue failing to distil down to strong profitability, while the share price has felt well overdone on the downside for a while it keeps on falling!
A downgrade to guidance and subsequent 29% plunge by rival Perenti (PRN) yesterday hasn’t helped over recent sessions, it feels like were going to need to some meaningful good news from the company / sector to turn this ship around short-term. Weaker margins off the back of higher wage costs are a headwind facing the broader sector.
At this stage we continue to hold NWH but are not considering adding to our position.
