Ausdrill payout breaches Macmahon offer

Takeover target Ausdrill Ltd has posted a 28 per cent increase in its full year net profit on the back of a six per cent increase in revenue to $391 million.

The company, which is fending off a takeover bid by engineering and contracting company Macmahon Holdings Ltd, posted a net profit attributable to members of $35.3 million.

The result represents an earnings per share of 22.72 cents, up nine per cent on the previous year.

Earnings before interest and tax rose 35 per cent to $60 million.

The directors have declared a fully franked final dividend six cents per share, payable on October 26, and taking the total dividend for the year to a record 11c per share, up 22 per cent.

Ausdrill said the dividend declaration will breach one of the conditions imposed by Macmahon's takeover offer.

Ausdrill chairman Terry O'Connor said the company expects to deliver earnings growth in 2009 of at least 20-30 per cent.

Earlier this week, Macmahon increased its takeover for the Ausdrill, raising its scrip offer from 1.45 to 1.65 of its shares for each Ausdrill share.

Ausdrill directors have recommended shareholders reject the offer, saying the latest bid represented less value than the original.