19/08/2009 - 11:41

AusGroup delivers record earnings

19/08/2009 - 11:41

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Engineering and construction company, AusGroup has delivered record earnings thanks to it work in the resources sector over the last 12 months, with revenue and profit surging 26 per cent and 52 per cent respectively.

Engineering and construction company, AusGroup has delivered record earnings thanks to it work in the resources sector over the last 12 months, with revenue and profit surging 26 per cent and 52 per cent respectively.

AusGroup's turnover climbed over $478 million in the 12 months to June 30, as compared to $378.9 million in FY 2008.

The company's net profit attributable to equit holders grew to $21.8 million from $14.3 million the previous year.

And the future looks bright for AusGroup with an order book of $403 million as at July 31.

AusGroup cheif executive and managing director, John Sheridan is pleased by the performance this financial year but admits there's still plenty of work to do, with a clear focus on improving the consistency of earnings across all parts of the business.

"That said we have a challenging 6 months ahead as the effects of the Global Financial Crisis (GFC) impact our revenues and earnings, particularly in the mineral resources sector," Mr Sheridan said in a statement.

"Activity in this sector has been impacted over the last 9 months as a number of resource development projects were delayed, deferred or cancelled.

"What is encouraging is that we are now seeing increased tendering activity across the mineral resources sector which in turn will flow on to improved demand for the Group's services in the second half of 2010FY.

"On the oil and gas side of our business we remain quietly confident as we are well positioned to secure opportunities from the strong Western Australian LNG sector.

"We have a strong order book, a healthy balance sheet, a clear and focused strategy and good exposure to the recovering demand in the natural resources markets. We are well positioned to continue to deliver solid returns to our shareholders."

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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