Brierty shares soar on record profit

Contracting group Brierty's shares have jumped after it booked a record net profit for financial year 2013, a result it says was driven by its diversity of operations.

Brierty today announced an 8 per cent increase in profit to $10.2 million, on the back of a 16 per cent increase in revenue, to $292.4 million.

Operating cash flow was up 17 per cent, to 26.8 million.

The company will pay a final dividend of 1.9 cents per share, taking its full year dividend to 3 cents per share, up from 2.75 per share last financial year.

Brierty shares had jumped 25 per cent on the ASX at 10:20AM, trading at 35.5 cents.

Managing director Peter McBain said Brierty’s ability to provide a wide range of services generated the strong earnings performance.

“Throughout the year we performed significant works including a Karara Mining’s haematite project, the Bellamack development in Darwin, FMG’s mainline duplication project, Trinity and Alkimos for LWP Property Group, Rio Tinto’s Wickham accommodation project and commencing work on Abydos Road for Atlas Iron,” Mr McBain said in a statement.

“At the same time we completed 20 smaller civil projects including work at the Perth Airport, LandCorp works at Claremont, road works in Northam and subdivisional work in Darwin, Roebourne, Newman and Perth.

“This provided us with a broad revenue mix and reduced our reliance on any one project or sector.”

Mr McBain said Brierty's result benefitted from completing an efficiency and flexibility restructuring program in FY2013.

As of June 30, the company’s net debt was $23 million.

“By continuing to provide services to a diverse market, maintaining a sound balance sheet and possessing the right structure, Brierty is well placed to compete for and execute on projects for clients and deliver value for shareholders in 2014,” Mr McBain said.