17/02/2009 - 13:26

Brierty delivers profit rebound for H1

17/02/2009 - 13:26

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Civil contractor Brierty expects a steady second half despite softer market conditions as it posts a profit rebound for the first half of fiscal 2009.

Civil contractor Brierty expects a steady second half despite softer market conditions as it posts a profit rebound for the first half of fiscal 2009.

In its interim report released today, Brierty reported a net profit of $4.6 million, a turnaround from the previous six month's pro forma loss of $3.6 million.

Revenue for the reporting period was down 10 per cent to $104.3 million while earnings before interest, tax, depreciation and amortisation was up 66 per cent to $11.1 million.

Chief executive Stuart Crofts told WA Business News the figures are a pleasing result, with contributions from the four divisions "so balanced".

Over the six months to the end of December, the land development division generated revenue of $29.1 million, up 82 per cent from the previous corresponding period.

Revenue for the roads division jumped 81 per cent to $20.1 million while revenue for mining climbed 41 per cent to $24.5 million.

Brierty's infrastructure was the only division to experience a decline with revenue falling 57 per cent to $30.5 million.

Mr Crofts said the fall was due to the completion of Fortescue Metals Group's rail project.

"Moving forward we'll see steady performance from all four units," he said.

"Last year we had one major contract with the infrastructure unit, currently we don't have a major contract for infrastructure division.

"However we've got some good opportunities in front of us which are comparable in terms of size."

Mr Crofts added that the roads, infrastructure and land development divisions have the opportunity to benefit from the federal government's stimulus packages.

The Senate last week passed an amended version of the $42 billion stimulus package and late last year, the federal government boosted the first home owners grants.

Meantime, Mr Crofts said that despite all the bad news coming in from the mining sector, the company has not experienced any significant downturn in that division.

"In mining, we're still seeing a steady stream of enquiry documents to tender against," he said.

Mr Crofts added that Brierty has been able to retain staffing numbers with the company currently employing some 400 people.

He said Brierty is well placed to maintain profitability due to the strength of the management team and the quality of the business processes.

He said Brierty is well placed to maintain profitability due and will continue to leverage its existing client relationships to enter new markets, providing the company with a low risk growth path.

Brierty has declared an interim dividend of 0.5 cents, fully franked and its order book stands at over $180 million.

 

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