Engineering and construction company Decmil Group has reported an after tax profit of $9 million for the first half of 2009/10, largely on the back of significant contract wins by its subsidiary, Decmil Australia.

Revenues for the six months to Decmber 31 2009 rose 20 per cent to $149.2 million following $160 million in newly awarded contracts and contract extensions, boosting its total current order book to $390 million, of which more than half relates to FY2011.

Decmil Group chief executive, Scott Criddle said the company's major subsidiary, Decmil Australia continues to leverage its reputation with key blue-chip clients for additional contracts.

Decmil expects the current strong levels of business activity in its core areas of business - accommodation villages, civil works and non-process infrastructure - to continue.

"The company continued to cement its position as a leading design, engineering and construction companies servicing Western Australia's resources and oil & gas sectors," Mr Criddle said in a statement.

Shares in the company had moved up by half a cent, or 0.38 per cent, to $1.31 at 1230AEST.

 

Full announcement below:

DECMIL GROUP CONTINUES TO DELIVER STRONG OPERATING PERFORMANCE

HIGHLIGHTS
 Net profit after tax of $9.0 million, up from $0.54 million
 Sales Revenue of $149 million, up 20 per cent
 Generated $8m cash from operations
 Added $160 million of new contracts to order book
 Total forward order book $390 million

WA-based design, civil engineering and construction company Decmil Group Limited (ASX: DCG) ("DGL") today reported an after tax profit of A$9 million for the half year ended 31 December 2009, up from $0.54 million in the corresponding period last year.
Revenues for the period rose 20% to A$149.2 million, largely on the back of significant contract wins and contract extensions by its subsidiary, Decmil Australia.

Financial highlights for year ending 31 December 2009 include:
Income area HY 09 (A$) change

Revenue $149.2M +20%

Profit after Tax $9.0M up from $0.54M

Earnings per share 7.47cps up from 0.46cps

EBITDA $14.6M +387%

Operating Cash Flow $7.6M +162%
Net Cash Position $22.6M +402%

The company was awarded approximately A$160 million in new contracts and contract extensions during the six months to 31 December 2009, boosting its total current order book to A$390 million, of which more than half relates to FY2011.

DGL CEO Scott Criddle said, "The company continued to cement its position as a leading design, engineering and construction companies servicing Western Australia's resources and oil & gas sectors."

"Our major subsidiary, Decmil Australia, continues to leverage its reputation with key blue-chip clients for additional contracts, a testament to its strong reputation for delivering projects on-time and on-budget in a competitive market environment," Mr Criddle said.\

Total workforce numbers increased during the first half in line with work volumes and, at the end of the reporting period, DGL had 940 employees.

The company made a significant investment in its systems and processes during the period to provide surety of its management capabilities to pursue contracts up to the value of A$500m.

DGL also continued to invest in health, safety and environment (HSE) systems, processes and training across the Group. During the period, the Company recorded a slight increase in its total case injury frequency rates (TCIFR) to 16.5 per cent.

As previously announced, DGL began the 2009/10 financial year well positioned with a strong forward order book.

In the first half, the Company continued to experience strong levels of business activity in its core areas of business - accommodation villages, civil works and non-process infrastructure - and this is expected to continue.

DGL currently expects second-half sales revenues and earnings for the Group will be similar to those of the first half.

Current business activity and DGL's forward order book remain robust and, with an increasingly positive outlook for the Western Australian resources and oil & gas sectors, the Company is well positioned to capitalise on project opportunities.