22/02/2011 - 13:04

Brierty half year profit dips 16%

22/02/2011 - 13:04

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Civil and mining contractor Brierty has announced a 16 per cent drop in interim profit, but increased its revenue by 63 per cent to $100.5 million.

Civil and mining contractor Brierty has announced a 16 per cent drop in interim profit, but increased its revenue by 63 per cent to $100.5 million.

Brierty posted a $1.85 million interim net profit, down from $2.2 million the previous half year, mainly due to the previous result being boosted by a one-off capital expenditure tax benefit.

The company will issue a fully franked interim dividend of 0.5 cents.

Brierty said it had experienced pressure on operating margins during the period, particularly in the Western Australian land development sector.

"Brierty expects the company's financial performance in FY11 to be broadly in line with the previous year when net profit amounted to $5 million," a company statement said.

"However, significant new contracts and an uptick in general economic activity are expected to generate increases in both revenue and earnings in FY12.

"In terms of future opportunities, there are a number of significant resource infrastructure projects currently being tendered.

"Brierty considers it is well placed to secure one or more of these significant contracts."

At 1:00PM (WST) Brierty shares had shed 2.7 per cent, trading at $0.36.

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