Perth-based construction and contracting company Decmil Group has reported a 24 per cent lift in net profit to $23.5 million for the year to June 2011, and outlined a large pipeline of growth opportunities across Australia.
The higher profit was on revenue of $394.2 million, up 20 per cent.
The company said the solid performance was achieved despite the slower than expected ramp-up of resources and oil & gas projects in Western Australia, which delayed the start-up of work programs.
With higher profits and a solid balance sheet, the company has announced a maiden dividend of 6 cents per share, fully franked.
Decmil Group CEO Scott Criddle said it was awarded approximately $360 million in new contracts and contract extensions during the year, has $670 million in tenders submitted, and has identified many other growth opportunities.
"Decmil has consolidated its leadership position with blue-chip clients in Western Australia and will continue to pursue opportunities to leverage this standing to achieve organic growth in the Queensland and the Northern Territory market and develop a recurring revenue stream as part of DGL’s diversification strategy.
"There has been an unprecedented volume of tendering activity in Decmil’s target markets in recent months and the company is confident of securing a number of significant opportunities which will underpin strong ongoing revenue flows.
“Timing of projects remains the key risk in the short term," he said.
To support its growth, Decmil made two key appointments during the year.
Ray Sputore, who was previously Leighton Contractors’ General Manager - Western Region, was appointed Decmil Australia Managing Director, and Brenton Akehurst was appointed as Decmil Australia’s General Manager Queensland.