Ventia Services Group Ltd.

Overview Key strengths Key risks Robust credit metrics (debt-to-EBITDA ratio of 1.9x), underpinned by a capital-light business model and supportive financial policy. Fragmented addressable markets with modest barriers to entry and limited differentiation from competitors. Solid position in Australian and New Zealand outsourced operations and maintenance (O&M) markets. Reduction of outsourced maintenance services from any industry trends, weaker economic incentives, or poor performance by contractors. Long-dated contracts with built-in price escalation mechanisms provide high revenue visibility. Smaller scale and limited diversity compared with global industry peers. The company used proceeds of about A$356 million from its initial public listing (IPO) in November 2021 coupled with existing cash to repay debt of about A$1.38 billion in fiscal 2021. Combined with a

...Ventia Services Group Ltd. (Ventia) has robust credit metrics after its fiscal 2021 deleveraging using listing proceeds. The company used proceeds of about A$356 million from its initial public listing (IPO) in November 2021 coupled with existing cash to repay debt of about A$1.38 billion in fiscal 2021. Combined with a sound underlying operating performance, it reported robust fiscal 2021 results. Debt-to-EBITDA ratio was 1.9x, down from 5.1x in fiscal 2020. We expect this metric to trend toward the mid-1x range over the next two years as Ventia benefits from revenue growth in most of its operating segments while maintaining margins. In addition, a...

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