Brierty profit down 19%

Contractor Brierty has posted a 19 per cent half-year profit reduction as increased competition in the company's civil construction division squeezed its margins.

Brierty reported a net profit after tax of $4.4 million in the six months to December 2013.

The contractor's revenue was in line with the previous corresponding period at $148.7 million.

Brierty managing director Peter McBain said the company had delivered a solid result in a period of competitive market conditions. 

"We have experienced increased competition in the sector which has put some pressure on margins, such as in the civil business," he said.  

"However, through the diversity of Brierty's service offering and our ability to consistently perform work safely for our clients, we have demonstrated our capacity to continue winning contracts in this environment and deliver on them profitably. 

"Importantly, our reputation in project delivery has seen us win repeat business, which is very pleasing."

Mr McBain said the company had placed a strong focus on lowering its debt levels, with the company's net debt falling by $9.7 million in the past six months to $13.4 million. 

Its gearing ratio sat at 20 per cent at the end of December 2013, compared with 30 per cent six months earlier. 

The company won 17 projects valued at $180 million in the first half of the 2014 financial year, with clients including mining giants BHP Billiton and Rio Tinto and land developers Cedar Woods Properties and Peet. 

Brierty shares closed the day's trade more than 5 per cent higher at 41 cents.